Brazil's Energis8 CEO: aims for annual SAF production of 1 billion liters

Marcos Guerra, the Chief Executive Officer of Brazilian firm Energis8, said in an interview that the company expects to produce 1?billion liters per year of sustainable aviation fuel. He added that important 'planning' should be completed by the end of this?year.

Guerra, who spoke on Monday, said that the?company (also known as E8R) will produce aviation fuel using a tolling system where clients provide Energis8 ethanol for conversion into SAF in exchange for a fee. The mechanism will be less expensive than spot prices. Brazil is one of the world's largest ethanol producers. Although sugarcane has been the mainstay of this sector for many years, the production of ethanol from corn and other grains is exploding in recent times. Industry leaders are calling for the expansion into aviation and maritime fuels.

Guerra stated that the project will start in 2031, and he expects to spend $1.3 billion on capital expenditure. He also said he is confident that global shift towards using renewables instead of fossil fuels will only grow.

He said that "this decision will not be reversed" in Sao Paulo. The project, he added, would be built in Paulinia in the state of Sao Paulo to take advantage its proximity to major airports such as?Guarulhos or Viracopos Campinas.

Guerra stated that even though SAF jet fuel is more expensive today than fossil-based jet oil, the costs will eventually be equalized.

He said that there will come a time when renewable?fuels will be cheaper or on par with oil. The tolling model will mitigate the exposure of SAF price volatility.

He said that the project would require 1.7 billion liters per year of ethanol to convert into SAF. Clients will be charged per liter.

Guerra, who currently owns 85% of the company, will be able to fund 40% of the project through equity and the remaining 60% with debt.

(source: Reuters)