BRAZIL’S STATE-OWNED PETROBRAS HITS THE BIODIESEL MARKET

DINHEIRO RURAL MAGAZINE
By Fabio Stefano

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It’s like a shock between tectonic plates. This earthquake – a producer of good vibes – is being wrought by Petrobras and may very well revolutionize Brazilian agribusiness. After all, when the largest Brazilian corporation, with revenues of R$ 136 billion (approximately US$ 62 billion), moves in a certain direction, the effects can be felt miles away.

That is what is happening right now in a strategic area. On the one side, Petrobras has just presented H-Bio to the world. The process, invented by company engineers, produces diesel based on a mixture of oil and vegetable oil, made from several feedstocks, especially soy. The technology implies adding, in theory, up to 18% of the green product to the fossil material, to obtain a product that is identical to the one being sold today.

On the other side, BR Distribuidora (Petrobras’ distribution unit – H.O.), a subsidiary of Petrobras, has started selling biodiesel (a separate product) in 700 stations. It is a mixture that adds 2% vegetable oil to conventional diesel.

“We have taken a decisive step to create a new kind of economy around the world”, José Sérgio Gabrielli, the president of Petrobras, told “Dinheiro Rural”. “Soon, selling biodiesel will be a routine activity, just like selling gasoline or ethanol”, adds Graca Foster, president of BR Distribuidora. Ale Combustiveis (“Ale Fuels”), another Brazilian company, is a pioneer in this market. It already sells the product in 168 stations.

To get an idea of the impact caused by Petrobras’ entry in the agribusiness market, look no further than what happened in Araucaria, in Parana state (southern Brazil), at the end of June. To wrap up H-Bio tests at Petrobras’ own Getulio Vargas Refinery (Repar), 1.8 million liters of soy oil were used – an amount sufficient for only four days' production.

Initial production with the H-Bio technique, which will be carried out in only three company refineries, will demand 256 thousand cubic meters per year. This amount represents 10% of soy oil exports from Brazil this year.

On the other hand, using the vegetable-based product allows Petrobras to save 15% in diesel imports, generating US$ 145 million in savings a year. “The H-Bio technology, which complements the biodiesel technology, allows Brazil to move on further down the road of energy independence”, says Gabrielli.

(With a tip of the hat to Caio Heleno - H.O.)

Hear it from the horse's mouth - follow what's happening in the Brazilian ethanol market on Ethablog, the only blog in English dedicated to Brazilian ethanol.