Tag: COP28

Dubai, December 9, 2023 – A panel hosted by Acelen and the Fraunhofer Institute detailed the features affirming the net positive capability of macaúba. Panel participants included Peter Eisner, Deputy Director of the Fraunhofer Institute; Bernardo Estepha, Decarbonization and Sustainability Specialist at Acelen; Daniel Donne, Director of Carbon Asset Solutions; and Gustavo Goretti, MAPA General Coordinator of the Secretariat for Sustainable Development and Irrigation.

Bernardo opened the panel by emphasizing Brazil’s significant potential to lead the transition to green energy. He presented Acelen’s project, focusing on the production of renewable fuels, Sustainable Aviation Fuel (SAF), and Renewable Diesel from macaúba—a native Brazilian plant with high energy potential. Bernardo highlighted the project’s ability to reduce carbon emissions by up to 80%, providing the 4Fs: feed, food, fiber, and fuel. “We will export biofuel to the United States and Europe. Brazil will decarbonize the world while decarbonizing itself,” he stated. Bernardo also underscored the project’s social impact, generating 90,000 jobs, and its environmental aspects, including land restoration and the low water requirement for macaúba cultivation.

Estepha explained the origins of the Macaúba project and stressed the importance of “verticalizing” it from the beginning. He referenced research estimating the carbon credit market in Brazil as an $80 billion opportunity, asserting, “Brazil has everything to be a net exporter.” Echoing statements by Paul Polman, Estepha reinforced that Macaúba is a “net positive” raw material with entirely exploitable positive impacts.

Gustavo Goretti, representing the Ministry of Agriculture, focused on integrated crop-livestock-forest systems and ways to restore degraded soils by generating income for producer families. “Rural landscapes will be restored with forest and pasture walking hand in hand,” he declared.

Daniel Donne from Canada discussed carbon economics and explained the “MRV” system, where carbon emissions can be measured and quantified, enabling fair and standardized benchmarks. Donne listed the necessary methodologies to validate carbon dioxide measurements retained and emitted in plantations and praised Acelen’s 20-year commitment horizon, stating that it is the minimum for building a consistently regenerative performance.

Lastly, Professor Peter Eisner from the Fraunhofer Institute highlighted the versatility of Macaúba as a raw material serving various industries, not only producing energy but also foods and derivatives like bio-plastics. Eisner contextualized the global increase in demand for oil, emphasizing the need to meet this demand without deforestation, making Macaúba the ideal solution. “This is the future of agriculture,” Dr. Eisner exclaimed.

Dr. Eisner concluded by emphasizing that Macaúba is a solution respecting three pillars: social, economic, and environmental. He highlighted the ample space for value generation because macaúba can be used as fuel, feed, food, and fiber, becoming a rare zero-waste product aiding in regenerative agriculture. Additional differentiators for macaúba include its potential use on degraded lands, restoring soil health and carbon sequestration, and its cultivation in agroforestry and silvopastoral systems, without competing with food production.

Unveiled during COP-28, the initiative aims to produce the first low-carbon intensity fuel derived from a Brazilian plant, the Macauba

Dubai, December 7, 2023 – Acelen Renewables hosted an event on Thursday, December 7, at the Museum of the Future in Dubai, aiming to globally present its pioneering project that will propel Brazil a step forward in the global energy transition. Newly created and announced during COP-28, the company enters the market with investments exceeding $2.5 billion. The primary focus will be on the production of renewable fuels, Sustainable Aviation Fuel (SAF), and Renewable Diesel, derived from the Macauba – a native Brazilian plant with high energy potential. The company is a subsidiary of Acelen and is sponsored by Mubadala Capital, a global asset management company.

At Thursday’s event, global authorities and leaders had the opportunity to closely explore Acelen Renováveis’ key initiatives towards the energy transition. Among the guests were Saled Alsuwaidi, Ambassador of the United Arab Emirates to Brazil; Oscar Fahlgren, CIO of Mubadala Capital and head of Mubadala Capital in Brazil; Arthur Lira, President of the Chamber of Deputies; Pietro Mendes, National Secretary of Oil, Natural Gas, and Biofuels at the Ministry of Mines and Energy; Mauro Mendes, Governor of Mato Grosso; and Eduardo Sodré, Secretary of the Environment for Bahia.

To underscore the discussion on the future of the energy transition, the company invited renowned author Paul Polman, an international reference in sustainability in business, to deliver a lecture during the event. Polman was one of the key figures in developing the United Nations Sustainable Development Goals and currently collaborates with various companies to accelerate actions addressing climate change and inequality.

Throughout the ceremony, Acelen Renewables reiterated its commitment to supporting the planet in significantly reducing its CO2 emissions, integrating and supporting social and environmental development. “Alongside industry partners and players, the event marks a very important day for our company and for all those, like us, committed to developing actions that contribute to a greener future. We will produce in Brazil the fuel of the future, in a ‘fully sustainable’ project: economically, socially, and environmentally. Very pleased to say that Acelen Renewables is already part of the seed of the future,” commented Luiz de Mendonça, the company’s CEO.

“The society of the future is cooperative, and the future of power is to serve.” This phrase marked Paul Polman’s presence at the event, emphasizing that Brazil already has much to be proud of, with 92% of its energy coming from green energy sources, the largest share in the G20. “In 2022, the renewable energy sector employed 1.4 million people in Brazil, the largest in Latin America. Brazil continues to play a crucial role in biofuel technology as well, leading the way for over five decades and becoming the world’s second-largest biofuel producer,” praises Polman.

Polman emphasizes that for the planet to stay within the 1.5-degree limit, it is necessary to urgently reduce and eliminate the use of fossil fuels. “The magnitude of the crisis we face requires companies from all sectors to reconsider their business models, something challenging for corporations and countries. However, after meeting Acelen’s innovation team, I can say that my hope is confirmed. We have in our hands, with the macauba plant, a rapid potential for the well-being of the planet.”

Peter Eisner, Director of the German Fraunhofer Institute, explains that family farming in Brazil based on macauba can become a source of the country’s growth, especially if we consider local communities and native peoples. “It is very important to show that by investing in natural capital for energy transition, Brazil can grow faster and lift more people out of poverty more quickly. And that is possible,” he emphasizes.

“Deforestation has decreased in a relatively short period. It’s an economy that, with natural capital for energy transition, is becoming healthier, growing more than the rest of Latin America. And this project presented by Acelen values biodiversity, restores nature, and creates an economy around what is sustainable. We need more projects like these.”

Project Advances in Bahia and Minas Gerais

During COP-28, the company pledged to building the biorefinery in Bahia, and collaborate on establishing an innovation hub in the state, engaging local research institutions and universities. Thus, Acelen Renewables will work on the development of Macauba in Bahia and the revitalization of oil palm cultivation.

The location will be crucial for technological development and the training of small farmers in Bahia, with partnerships focused on family farming programs. Another important aspect is that the company will support the government of Bahia in mapping and identifying suitable areas for Macauba cultivation, with an emphasis on structuring agreements for the implementation of agro-industrial hubs in the region.

With the government of Minas Gerais, Acelen Renewables also announced the start of implementing a Center for Innovation and Agro-Industrial Technology (CITA), located in the city of Montes Claros. The Center will be a space for research, improvement, and development of Macauba. Consequently, the company will produce high-quality Macauba seeds and seedlings, enhancing the importance of the native plant in the energy transition process.

“The research and development of this Macauba seedling micropropagation protocol are unprecedented worldwide and represent a significant step for the production of a promising crop,” emphasized the CEO of Acelen Renewables.

Innovative Partnerships

Acelen Renewables seized the importance of COP-28 to promote the signing of several contracts with strategic partners.

On this occasion, several partnerships were established: with Honeywell, which will be the technology licensor and supplier of advanced engineering for the Ecofining TM unit for the production of renewable fuels; with ALFA LAVAL, responsible for developing and implementing the vegetable oil refining solution, and with AFRY, the selected company to carry out the basic engineering of the unit and provide consulting services to obtain the necessary Environmental Alteration License (LA) for the project.

About Macauba – a Brazilian plant with high oil productivity per hectare and highly competitive compared to other crops, it offers greater efficiency in water and nutrient use. As a native perennial species, it enables a range of environmental services such as conservation or even biodiversity recovery, as degraded areas are replaced by macauba forest systems. This allows for vegetation cover, conserving soil and its biota, contributing to water resource recovery, and serving as a food source for native birds and other animals. Its cultivation will follow the best agricultural and environmental practices, promoting carbon capture and reducing CO2 emissions from seed to fuel.

Marcelo Lyra, Vice President of Communications, Institutional Relations and ESG at Acelen, shows that Brazil can be a “green economy hub”. André Valente, Sustainability Leader at Raízen, and Ligia Sato, Sustainability Manager at Latam, also took part in the panel.

During a panel held at the CNI stand on Tuesday (5) at COP28 in Dubai, Acelen’s Vice President of Communications, Institutional Relations and ESG began his presentation with figures from a McKinsey study showing the financial dimension of Brazil’s leadership in the world’s energy transition. According to the data, Brazil has opportunities of U$30 billion in renewable energies by 2040, U$60 billion in power-based energy and U$35 billion in the carbon market. “It seems that Brazil has huge potential to become a very important player in the world’s energy transition.”

Lyra points out that the financial potential related to renewable fuels in Brazil is U$40 billion by 2040. “We are moving away from the oil option towards multiple alternatives. In addition to the economic motivation, we have the environmental emergency, the survival of the planet.”

Lyra said that Acelen has already announced investments of more than US$ 2.5 billion focused mainly on the production of renewable fuels: SAF (Sustainable Aviation Fuel) and renewable diesel.

Lyra also explained that there are a number of potential energy transition alternatives in the country. “Brazil can change 47% of its electricity by including solar and wind energy and can produce one of the cheapest green hydrogens in the world, not to mention the growth of sugar and alcohol in the country.”

André Valente, Raízen’s Sustainability Leader, points out that Brazil has unparalleled features and is where many countries would like to be in terms of renewable energy and electricity matrix. “We have access to land, raw materials, efficient processes, traceability, active logistics and affordable production costs.” Valente mentioned second-generation ethanol as an example. Regarding the country’s role, he explains that Brazil is a green power that will help the world. “We have the duty to build a global consensus on this.”

Lígia Sato commented that Latam has an ESG strategy aligned with the UN’s objectives based on three pillars: climate change, circular economy and shared value. “Aviation accounts for 2% of carbon emissions. We have established the commitment to have carbon-neutral growth, reduce and offset 50% of our domestic emissions by 2030, be net zero by 2050 and use 5% of SAF by 2030 in our operations.”

Stakeholders in production, industry, trade and regulation arenas are aligned to accelerate the world’s energy transition.

In a panel at the CNI stand on Tuesday (5), Acelen’s VP of New Business, Marcelo Cordaro, began the talk by explaining the pillars of Acelen’s project, which will invest more than R$12 billion in the production of renewable diesel and SAF (Sustainable Aviation Fuel) made from macauba.

Cordado listed its social, economic and environmental gains. “At least 5 agro-industrial hubs will be set up to grow macauba by recovering degraded land. A total of 200,000 hectares of land in the state of Bahia and in Minas Gerais will be cultivated with macauba through public/private partnerships and the use of family farming and up to 355 tons/ha of CO2 will be captured. Environmentally speaking, the plantation is expected to capture 60 million tons of CO2 over 20 years. We are going to produce the fuel of the future in Brazil in a ‘fully sustainable’ project in economic, social and environmental terms.”

Over the course of the project, the expectation is that over R$85 billion will be moved into the economy, more than 90,000 direct and indirect jobs will be created, and CO2 emissions will be reduced by up to 80% compared to those of fossil fuels, which reinforce the company’s commitment to a more sustainable future.

Industry (Airbus), commerce (AmCham) and regulation (federal government) partners expressed their desire to speed up the implementation of actions so that all participants in the production chain are aligned.

Subsequently, Oliver Husse, Director of Sustainability and Environment at Airbus, demonstrated that the industry is committed to creating SAF-compatible solutions. Airplanes want to be greener and Husse stressed that there is a guaranteed commitment
from Airbus. “The project is aligned with the company’s plans. We want to ensure that all Airbus aircraft, both civil and military, are 100% SAF-compliant by 2030.”

Abraão Neto, CEO of Amcham Brazil, highlighted the need to develop a coherent approach between Brazil and the United States regarding the regulation of trade for biofuels.

Neto recommended the adoption of a clear Brazilian regulatory framework so that biofuels from Brazil can compete on the global market under a unified standard and thus be easily exported.

AmCham’s CEO also mentioned strategic points of the approach that need to be consolidated: regulatory framework, international certifications, calculation of SAF through carbon credit (book and claim) and tax burden: tax isonomy. “There is an opportunity to boost SAF production and achieve the carbon neutral goal. The aviation sector is crucial in the global effort against climate change and as a significant contributor to decarbonization.”

Juliano Noman, Secretary of Civil Aviation, praised the harmony among sectors. “All stakeholders are well aligned.” The government is targeting 115 million Brazilians who still don’t fly regularly because of costs. The government’s primary intention in supporting SAF is to reduce ticket prices in order to make flying affordable in Brazil not only for classes A and B.

Noman also stressed that there is sincere political motivation to speed up SAF regulation and guaranteed that a regulatory framework will be achieved. “SAF is the big star in decarbonization. The global nature of aviation requires a global standard of regulation. Government, civil society, industry and airlines must be in alignment with the objectives in the path to decarbonization.”

Luiz de Mendonça presented the 4 Fs of this raw material from Brazil – food, feed, fiber and fuel – and highlighted how macauba represents the future of low-carbon biofuels.

 

Directly from COP28 in Dubai, Acelen CEO Luiz de Mendonça presented at Abu Dhabi Sustainability Week how macauba will be one of the leaders in the energy transition and an integral part of the future of low-carbon biofuels. “I want to present to you this small plant from Brazil, macauba: it can solve the problem of raw materials for renewable fuels.”

Mendonça explained that macauba is what is known as a 100% usable raw material because it encompasses the 4 Fs – food, feed, fiber and fuel – and is totally sustainable considering its social, economic and environmental elements. Another highlight of the project according to the CEO is its impact on family farming in Bahia and how it creates an ecosystem of strategic partners, such as Brazilian universities and the German Freunhofen Institute.

Mendonça also said that Acelen’s investments in the production of renewable fuels amount to more than USD$2.5 billion over the next few years and that this is a unique and transformative project, which marks the company’s leading role in the world’s energy transition. He also highlighted that it will create more than 90,000 direct and indirect jobs and its CO2 emissions will be up to 80% lower compared to those of fossil fuels.