São Paulo (Reuters) – The exclusion of as biodiesel from a reserve auction of electricity capacity in Brazil led to the suspension of a Binatural’s half billion reais investment, the company’s CEO told Reuters.
According to André Lavor, Binatural was in advanced negotiation with one of Brazil’s largest thermoelectric plants, located in the Northeast, to enable what he called the first sustainable thermoelectric complex in Brazil.
“The construction of a biodiesel plant linked to an existing thermoelectric … This robust investment was suspended by excluding biodiesel in auctions,” said the executive.
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In addition to the investment, the projected biodiesel plant would expand national production by 540 million liters per year. This biofuel is made mostly with soy oil in Brazil.
Binatural has been working for about 19 years in the sector, currently operating two plants – one in Formosa (GO) and one in Simões Filho (BA), with a joint productive capacity exceeding 600 million liters per year.
Sought, the Ministry of Mines and Energy stated that the capacity reserve auction guidelines, scheduled for 2026, “were proposed to offer greater operational flexibility to the electrical system, stimulate competition between the different sources included in the event planning and, consequently, to bring greater benefit to the consumer.”
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The ministry also stated that there are already public policies addressed to the biodiesel sector, such as E30 and B15 mandates, which increased the addition of the anhydrous ethanol in gasoline and biodiesel in diesel.
The ministry’s note added that, with B15 alone, more than R $ 5 billion is foreseen in new investments in soybean crush and crushing units, as well as the generation of more than 4,000 jobs, “not to mention the 5,000 new families of family farming that must be incorporated into the social biofuel seal program.”
Low carbon
The exclusion of biofuel, said Binatural, occurred at the same time as the government made room for fossil fuels, including coal, fuel oil and diesel to move thermoelectric plants.
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“This decision occurs precisely when Brazil prepares to host COP30 in Belém, and seeks to present to the world a climate schedule centered on emissions reduction and transition to a low carbon economy. The scenario generates a perception of contradiction,” said Lavor.
According to Binatural, so far no detailed studies have been presented that justify the exclusion of biofuels. Technical notes No. 84 and 85/2025 cite costs of costs, deadlines and logistics, “but genericly,” said the company, who also refuted positions against the viability of biodiesel in large engines.
The capacity reserve auction is currently in public consultation.
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The company said biodiesel is already a strategic asset for national energy safety. Today, the sector has more than 60 plants in all regions, with productive capacity of over 15 billion liters per year and operated by 2024 with only 59.5% occupation, according to data cited by Binatural.
