Brazil's Energis8 Eyes Annual SAF Output of 1 Billion Liters, CEO Says

Brazilian firm Energis8 expects to produce around 1 billion liters of sustainable aviation fuel annually, Chief Executive Marcos Guerra told Reuters ​in an interview, adding that important planning should be finished by ‌the end of this year.The company, also known as E8R, will produce aviation fuel via a tolling model where clients supply Energis8 with ethanol to turn into SAF for a fee, ​Guerra said on Monday, adding that the mechanism will be cheaper than ​spot prices.

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Brazil is a major ethanol producer. Though the sector has ⁠long been the preserve of the country's sugarcane producers, ethanol produced from corn and ​other grains has exploded in recent years, with industry leaders calling for expansion into ​maritime and aviation fuels.The project is expected to start running in 2031 and is forecast to need capital expenditure of $1.3 billion, Guerra said, adding that he was confident that the global ​move toward using renewables rather than fossil fuels is only going to build ​momentum."This decision is not going to be taken back," he said in Sao Paulo, adding that ‌the ⁠project will be built in Paulinia, in Sao Paulo state, to take advantage of its proximity to major aviation hubs like Guarulhos and Viracopos Campinas airports.Advertisement · Scroll to continueThough SAF is currently more expensive than fossil-based jet fuel, costs will surely move towards parity ​in the future, Guerra ​said."There will come ⁠a moment in aviation where renewable fuel will be cheaper or level with oil," he said, noting that the tolling ​model would mitigate the exposure to SAF price volatility.The project ​will require ⁠1.7 billion liters of ethanol per year to convert into SAF, he said, with clients to be charged a fee per liter for the conversion.While Guerra currently controls ⁠85% of ​the company - with 15% being held by three ​other executives he declined to name - 40% of project funding is expected to come from equity while ​the rest will come from debt, he added.