Private Group Announces Brazil's Two Longest 'Green Fuel' Pipelines
06.26.2024 By Tank Terminals - NEWS

June 26, 2024 [Reuters]- Brazil’s privately owned Grupo Potencial will invest 200 million reais ($37 million) to build two “green fuel” pipelines in the south of the farm powerhouse, the company’s Vice-President Carlos Hammerschmidt said on Monday.


The biofuel pipelines, which will be built starting next year if all permits are granted, will stretch 55 kilometers (34.2 miles) each and will the longest of the kind in the country.

One of the new pipelines will transport biodiesel and the other biofuels like ethanol, connecting the company’s Lapa biodiesel plant to a cluster of fuel distributors. It will spare the environment of use thousands of tanker trucks and enable Potencial to boost its own clean fuels portfolio.

The plant sells 65,000 cubic meters of biodiesel monthly on average, and intends to transport half of this via one of the new pipelines.

Potencial’s investment signals confidence that overall biofuels demand will rise as consumers demand less pollutant sources of energy, requiring efficient delivery options.

“It’s a question of humanity’s survival,” Hammerschmidt said by telephone referring to the importance of growing global biofuels supplies to prevent ever-more common environmental disasters.

Brazilian biodiesel producers, with access to abundant raw materials like soy, are clearly at an advantage. Cargill and ADM, among others, already produce biodiesel, opens new tab here while BP is expanding its biofuels clout.

Potencial’s project will also be transformational for the state of Parana, a traditional farm region and home to Brazil’s biggest biodiesel plant, the firm’s own Lapa compound, with capacity for 900 million liters. The investment is likewise a boost to Brazil’s underdevelopment energy pipeline network, which is about 5% of that of the United States, Hammerschmidt said.

Potencial makes biodiesel at Lapa and plans to sell corn ethanol and soy-based sustainable aviation fuel in the future.

By 2027, Hammerschmidt said, the country will also start demanding 1% of the fuel used on airplanes be “sustainable aviation fuel” known as SAF.

Brazil’s current mandatory biodiesel mix into diesel is 14% and is slated to be 15% next March.

Potencial also announced a 100 million reais investment to grow Lapa’s production of glycerine, which derives from biodiesel and is exported to China.


Free Trial: Access 13,300 Tank Terminal and Production Facilities

13,300 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data

Wood Bags Six-Year Contract on Shell’s Prelude Facility
07.12.2024 - NEWS
July 12, 2024 [Yahoo Finance]- Shell has awarded a six-year contract to engineering company Woo... Read More
Malaysia’s Bintulu LNG Plant to Get First Supplies from Jerun Gas Field
07.12.2024 - NEWS
July 12, 2024 [LNG Prime]- Malaysia’s giant Bintulu LNG plant, operated by Petronas, will soon ... Read More
Rubis Terminal Rebrands as Tepsa, Building on Legacy and Embracing Evolution
07.12.2024 - NEWS
July 12, 2024 [Storage Terminals Magazine]- Rubis Terminal is excited to announce a strategic reb... Read More
Adnoc Awards Abu Dhabi Airport Tank Farm Project
07.11.2024 - NEWS
July 11, 2024 [MEED]- Abu Dhabi National Oil Company (Adnoc) has awarded the main engineering, pr... Read More