Lula enacts Fuel of the Future law: “Brazil will drive the world's largest energy revolution”

Addressing an audience that included representatives from the energy sector, agro-industry, aviation, and key stakeholders in the energy transition process, President Luiz Inácio Lula da Silva declared with conviction: "Brazil will lead the world's largest energy revolution."

Which country can compete with Brazil in wind and solar energy? Which country can compete with us in hydric energy? Which country can compete in green hydrogen? All we need is the desire to be big. The desire to win. To have self-esteem” — Luiz Inácio Lula da Silva, President of the Republic of Brazil

The statement was delivered this Tuesday, October 8, at the Brasilia Air Base, during the enacting ceremony of Bill of Law No. 528/2020, which institutes the National Program for Sustainable Fuel for Aviation, National Program for Green Diesel, and the National Program for the Decarbonization of Natural Gas Producers and Importers and for the Promotion of Biogas.

“Which country can rival Brazil in wind and solar energy? Which country can compete with us in hydric energy? Which country can compete in green hydrogen? All we need is the desire to be big. The desire to win. To have self-esteem.” The new legislation presents a series of initiatives to promote sustainable, low-carbon mobility and consolidate Brazil’s position as a leader in the global energy transition.

“Brazil will get a head start because you, the entrepreneurs, have the capacity to produce, to research. Enacting this law demonstrates that none of us have the right to continue disbelieving that this country can be a large economy. What it needs is leaders who are up to the needs and aspirations of the people,” the president added.

Participants of the event included Vice President and Minister of Development, Industry, Trade, and Services, Geraldo Alckmin; the Minister of Mines and Energy, Alexandre Silveira; heads of other ministries, the President of the Chamber of Deputies, Arthur Lira, as well as parliamentarians and entrepreneurs.

“We are planting a new seed. The seed of the fuel of the future. It will generate over BRL 260 billion in investments in agribusiness and the biofuels chain. The fuel of the future places Brazil at the forefront of the new economy, the green economy,” summarized Alexandre Silveira.

“An agenda like today’s is an agenda of the State, of the country, of development. I do not doubt that they will become the country’s greatest assets, as a significant milestone is set today,” stated Arthur Lira.

Estamos plantando uma nova semente. A semente do combustível do futuro. Ela vai gerar mais de R$ 260 bilhões em investimentos no agro e na cadeia dos biocombustíveis. O combustível do futuro coloca o Brasil na dianteira da nova economia, a economia verde” -
Alexandre Silveira, ministro de Minas e Energia

COMMITMENT – In addition to the enactment of the Fuel of the Future Law (Lei do Combustível do Futuro), the event was marked by the signing of letters of commitment for investments in the biofuel sector in Brazil. Seven companies signed commitments that surpass BRL 20 billion.

ETHANOL AND BIODIESEL — The text outlines the increase in the ethanol blending margin with gasoline from 22% to 27%, with the potential to reach 35%. Currently, the minimum is set at 18%. Regarding the blending of biodiesel with fossil-derived diesel, which has been at 14% since March of this year, it states that one percentage point will be added to the mix annually, starting in 2025, until it reaches 20% by March 2030.

POTENTIAL – The executive director at the Brazilian Association of the Hydrogen Industry (Associação Brasileira da Indústria de Hidrogênio Verde / ABIHV), Fernanda Delgado, defined the enacted law as key for the future of renewable energy. “The importance of the Fuel of the Future is that it incorporates into the energy matrix sustainable fuels, which will guide the country’s renewable future. The Brazilian energy matrix is already renewable, with ethanol and biodiesel. However, this law mandates the expansion of this renewability, now including aviation fuels and marine fuels, as well as increasing the percentage of blends within fossil fuels,” highlighted the businesswoman.

PROGRAMS — The Fuel of the Future Law institutes programs to foster research, production, trade, and use of biofuels with the goal of promoting the decarbonization of the transportation and mobility matrices.

The programs are:

ENTHUSIASM - The president of the Brazilian Association of Wind Energy (Associação Brasileira de Energia Eólica / ABEEólica), Elbia Gannoum was enthusiastic about the enaction of the law. “This idea of the Fuel of the Future is the fuel that, in the end, at net zero, we will need to use. And Brazil is really leading this discussion because it has several natural resources that can be used to produce the green molecule —green hydrogen, which is made with clean and renewable energy— and our fuels —ethanol, biodiesel, and all the mixes we are going to promote so that we can reach the energy transition at the end,” said the president of ABEEólica. Through the Fuel of the Future, Brazil is expected to avoid the emission of 705 million tons of carbon dioxide (CO2) by 2037, strengthening the country’s commitment to reducing the greenhouse effect gas emissions. “The most important role here is the opportunity that Brazil identifies in this process of searching for a low-carbon economy, with a large global potency of renewable resources that can contribute to the climate solution. One cannot talk about a climate solution without taking Brazil into consideration, with the amount of resources it has to promote this transition,” stated Elbia Gannoum.

The most important role here is the opportunity that Brazil identifies in this process of searching for a low-carbon economy, with a large global potency of renewable resources that can contribute to the climate solution” — Elbia Gannoum, president of the Brazilian Association of Wind Energy

SIGNALING – According to Guilherme Nolasco, president of the National Union of Corn Ethanol (União Nacional do Etanol de Milho / UNEM), Brazil is sending a message to the world by sanctioning this norm. “I believe this is the most important legal framework of this administration. Brazil is signaling to the world that it has a vocation-based strategy for the energy transition through biofuels, be it for vehicle mobility, be it for aviation. And thus, it attracts the eyes of the world and investors through biomass, agriculture, generating jobs, social inclusion, income, taxes, to make the energy transition through biofuels,” analyzed Nolasco.

EXPO — The Liderança Verde (“Green Leadership”) Brasil Expo, where the sanctioning ceremony took place, gathers the largest public and private companies from the biofuels, gas, and electric energy sectors. The venue is holding a large exhibition of equipment and vehicles that use technologies led by the Brazilian industry in the fields of transportation and mobility, such as SAF and BioGLP, produced with renewable raw materials. At the expo, visitors can check out aircraft from air companies Azul, Latam, and Gol, and automobiles from major manufacturers, such as Mercedes, Toyota, Volvo, Renault, and Volkswagen. In all, over 50 vehicles are exposed in the patio at the Brasilia Air Base, including trucks, tractors, excavators, harvesters, buses, and cars.