Brazil’s President Lula signs Fuel of the Future law

Brazil's President Lula holds the Fuel of the Future legislation Oct. 8 during a signing ceremony. (Photo: Ricardo Botelho, Brazil's Ministry of Mines and Energy)

Brazil’s President Luiz Inácio Lula da Silva signed Oct. 8 the Fuel of the Future law, what the Brazilian government is calling “the largest decarbonization program in the transportation and mobility sector on the planet.”

The initiative, created by the Ministry of Mines and Energy, drives the emergence of new green industries in Brazil.

The program will unlock investments totaling $260 billion Brazilian reals (USD$46.8 billion) in various areas and actions, which the government said will prevent the emission of 705 million tons of CO2 by 2037.

Alexandre Silveira, the minister of mines and energy, participated in the ceremony at the Brasília Air Base together with authorities from the three branches of government.

The signing took place during the Liderança Verde Brasil Expo fair, with a demonstration of the main decarbonization technologies in operation in the country.

During the ceremony, President Lula highlighted Brazil’s potential, which the government said will ensure the success of the new law.

“Brazil is the country that will carry out the greatest energy revolution on planet Earth,” Lula said. “What country in the world can compete with Brazil in wind, solar, hydroelectric energy and green hydrogen? … The sanction of this law is a demonstration that none of us has the right to continue not believing that this country can be a great economy.”

Among the new sustainable fuels that will be produced with the new industry are renewable diesel and sustainable aviation fuel (SAF).

In addition to further promoting the use of biofuels and the development of new technologies, the law also establishes the regulatory framework for carbon capture and storage (CCS).

During the ceremony, several companies announced investments that will be possible due to the new law.

Raízen will invest $11.5 billion Brazilian reals (USD$2.07 billion) in the implementation of nine second-generation ethanol plants, and Inpasa has committed to investing $3.4 billion Brazilian reals (USD$611.7 million) over the next 18 months, with the amount being distributed between two ethanol plants and the construction of a biorefinery in Luís Eduardo Magalhães, Bahia.

In addition, Grupo Potencial announced investments of $3 billion Brazilian reals (USD$540 million) in the biodiesel production chain, with emphasis on the expansion of the Lapa plant in Paraná, which will become the largest single-plant biodiesel producer in the world due to the investment, according to the Brazilian government.

Grupo FS will implement a carbon capture and storage (CCS) plant associated with ethanol in Lucas do Rio Verde, Mato Grosso.

Also investing in a biodiesel plant in Uberaba, Minas Gerias, Be8 has committed to investing $400 million Brazilian reals (USD$72 million) in the project.

To implement a bioenergy research center, Shell—in partnership with Raízen and SENAI/SP—will invest $120 million Brazilian reals (USD$21.6 million).

Minister Silveira highlighted the importance of the program for Brazil’s future.

“We are making a true agro-energy revolution a reality, placing Brazil at the forefront of the new economy—the green economy,” he said. “We are combining the strength of Brazilian agriculture with our unparalleled capacity for biofuel production. The advances we will see as a result of this law are unprecedented, introducing sustainable aviation fuel and green diesel into the energy matrix and decarbonizing sectors that contribute significantly to the planet’s pollution. The Fuel of the Future is an energy transition with social development and environmental responsibility.”