BNDES and Finep call for SAF production received 167bn reais in proposals

This is an automated translation of the original release published in Portuguese.

By BNDES

November 8, 2024

The joint public call by the National Bank for Economic and Social Development (BNDES) and the Study and Project Financing Agency (Finep) with the purpose of selecting business plans for the development and implementation of biorefineries aimed at the production of sustainable fuels, including sustainable aviation fuel (SAF) and navigation fuels, received 76 proposals, totaling a potential investment of R$167 billion.

Of the total received, 43 proposals are primarily interested in the production of aviation fuels and total R$120 billion. For marine fuels, 33 proposals were received, totaling R$47 billion. In addition to taking advantage of export opportunities, the business plans also seek to meet local consumption targets defined with the approval of the Fuel of the Future Law.

“The quantity and quality of the proposals received demonstrate that Brazil does indeed have all the conditions to become a global leader in the production of sustainable fuels for aviation and navigation. Worldwide, aviation and navigation together contribute to around 5% of global CO2 emissions. Biofuels can reduce these emissions by up to 94%,” explains BNDES president Aloizio Mercadante.

“The huge demand reveals the government’s assertive commitment to building a low-carbon industrial policy, in line with a planet that needs to understand the importance of sustainability. This call only reinforces the important role of Finep and BNDES as inducers of these investments by the business sector,” said Finep president Celso Pansera.

The next stage will assess the proposals received according to the criteria defined in the call. The selected business plans will then receive an indication of financial instruments from BNDES and Finep that can be used to support the implementation of the projects.

The New Industry Initiative (NIB) public call for proposals closed at the end of October. According to the notice, R$6 billion in resources will be made available for projects, R$3 billion from BNDES and R$3 billion from Finep.