IBP - Brazilian Petroleum, Gas and Biofuels Institute

The Brazilian Petroleum, Gas and Biofuels Institute (IBP) brought together public and private sector authorities in Rio de Janeiro on June 17 during the “IBP Forum – SAF Brazil 2026: From Regulation to Operations” to discuss the development of the sustainable aviation fuel (SAF) market, which is awaiting the publication of the federal decree that will regulate the fuel mandate in Brazil in the coming weeks.

Producers, distributors, federal government representatives, regulatory agencies, logistics and airport operators, certification bodies, airlines, and industry associations shared their expectations and planned actions for the commercial introduction of SAF into the Brazilian market beginning in 2027, when the sector will be required to comply with new regulations.

Opening the forum, IBP Executive Director of Downstream, Carlos Orlando, highlighted SAF’s strategic role in the decarbonization agenda and the challenges that still need to be overcome for the market to advance.

“We are living through a unique moment. On one hand, there is a search for solutions that ensure energy security while reducing emissions. In this context, aviation occupies a strategic position. On the other hand, it must maintain competitiveness, connectivity, and accessibility,” he stated.

According to Orlando, the expansion of the SAF market depends, among other factors, on achieving scale and regulatory predictability. “Scaling up is a major challenge given current and future demand. Other challenges include pricing, since SAF production costs remain higher than those of conventional jet fuel, as well as maintaining the regulatory stability that is essential for attracting investment. Without overcoming these challenges, the product will not achieve scale.”

Representing the federal government, Lorena Mendes de Souza, General Coordinator for Biodiesel and Other Biofuels at the Ministry of Mines and Energy (MME), expressed optimism about the development of the new market.

“We are entering a new phase in the SAF agenda. Previously, SAF was seen as a promise, but that scenario is changing. In addition, Brazil is taking a smart approach by adopting emissions-reduction metrics,” she said, praising the country’s domestic policies and regulatory framework.

The importance of structuring a market focused not only on domestic consumption but also on exports was emphasized by IBP consultant Jorge Carmello.

“The Brazilian market is still in its infancy, but the global potential is enormous. We should also look at external markets,” he said, noting that Brazil attracts worldwide attention due to its abundant biomass resources.

From a regulatory perspective, Priscilla Vieira, from ANAC’s Environment and Energy Transition Department, explained the operational implications of the upcoming decree.

“The decree underwent public consultation and will establish the obligations and rights of all stakeholders, as well as compliance mechanisms and alternative means of compliance.”

Vieira also highlighted the adoption of the Book and Claim system, which will allow airlines and companies to purchase SAF-related environmental attributes and carbon credits.

Maria Auxiliadora Nobre, Deputy Superintendent for Environment and Technology at ANP, emphasized Brazil’s competitive advantages.

“We see Brazil as a powerhouse in the SAF segment. We have expertise in biofuel production, abundant biomass feedstock, and teams experienced in developing renewable energy solutions,” she summarized.

She also noted that SAF implementation is being carried out in coordination with ANAC, demonstrating integration among the various stakeholders involved.

Industry Perspective

Petrobras, which accounts for 31% of the country’s energy supply, is already positioning itself to secure a share of this emerging market and comply with future mandates once the federal decree comes into force.

“We already have co-processing operations in production, dedicated HEFA technology plants integrated into our refining system for SAF production (via SBC) and renewable diesel (HVO),” said William Nozaki, Petrobras Executive Manager for Energy Transition.

According to Nozaki, the company is prepared to utilize vegetable oil feedstocks such as soybean oil, as well as the Alcohol-to-Jet (ATJ) route using sugarcane and corn ethanol.

However, cost remains a significant barrier.

Cezar Mattar, Regulatory Affairs and Biofuels Certification Leader at Acelen, pointed out that SAF can cost up to four times more than conventional fossil-based jet fuel.

Even so, he argued that the environmental benefits justify the investment.

“It is estimated that 65% of aviation’s emissions reductions will come from SAF,” he said. “We see Brazil as having tremendous potential to ride the SAF wave. We have already proven our ability to produce biofuels, and we believe SAF is the next major opportunity.”

Christini Kubo, South America Director of Renewable Fuels at Bunge, highlighted the company’s fully traceable production chain.

“Today we announced the first SAF production based on low-emission soybeans. We have certification for our soybean supply chain, enabling us to demonstrate that production growth was achieved through productivity gains within the same cultivated area,” she explained.

On the international front, SAF producer Neste presented ambitious expansion targets based on HEFA technology.

“The company is increasing its SAF production capacity to 2.2 million tons by 2027,” said Pratik Chandhoke, Renewable Aviation Manager at Neste, emphasizing efforts to improve efficiency and offer lower-emission solutions to customers.

To ensure the fuel reaches aircraft, Brazil’s distribution infrastructure will need to adapt.

Guilherme Paiva, Operations Director at Vibra, expressed confidence in the 2027 timeline but highlighted infrastructure requirements.

“We are excited about the challenge of bringing SAF to market. However, we will need to build the necessary structure to handle the logistical complexity involved.”

Raízen has also begun positioning itself in the SAF market, according to Leticia Dranka, who oversees quality assurance at airports.

“We are already taking steps to purchase SAF. The challenge will be delivering the 10% target by 2037.”

From the airlines’ perspective, SAF viability requires carefully designed public policies.

Simone Warmbrand, IATA Country Manager for Brazil, warned about the risks of market imbalances.

“SAF production potential remains underutilized today, largely because of cost issues. Poorly calibrated policies can create unbalanced markets. At present, the SAF market is still a collection of isolated business initiatives rather than an integrated ecosystem.”

For Luciana Zotelli, Technical Coordinator at Peterson Solutions, the safety and transparency of the emerging market depend heavily on certification.

“It is important to map the landscape for clients, identifying eligible feedstocks and materials to support certification processes.”

According to Eduardo Adum Poles, Analyst at Control Union, Brazil is already making progress in this area. He emphasized the need to prepare for CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation).

“Brazil currently has 51 active CORSIA certificates, and projections indicate this number could reach 146 by 2030,” said Poles, noting that agricultural collection points currently represent the main certified activities.