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Silvio Cézar Pereira Rangel

President of the Federation of Industries of Mato Grosso and President of the Bioenergy Union of Mato Grosso

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Bioenergy: the fuel of the future

The production of bioenergy is a sure and safe way to resume industrial growth and, consequently, economic development in Brazil. With a growing world demand for a low-carbon economy, the country has the chance to be a protagonist in this scenario. Our bioenergy, produced in all forms, be it biofuels, bioelectricity, biogas, can be a relevant Brazilian product in the international market.

The world is experiencing a combination of energy and climate crises, generating a technological race for the consolidation and economic viability of new energy sources, especially renewable ones. Therefore, the outlook for the bioenergy sector is very positive, with a significant increase in demand for alternative energy sources, with a low carbon footprint and lower environmental impact. The window of opportunity is open in front of us. This is an agenda, above all, of technology, innovation, economic and social development.

With a green energy potential like no other place in the world, Brazil has an enormous competitive edge, especially if we compare aspects of technological capacity to increase productivity. The International Energy Agency considers the Brazilian energy matrix one of the cleanest in the world and points out the country as one of the most capable of contributing to reducing the impact of the generation of greenhouse gases.

According to data from the National Energy Balance of the Energy Research Company, almost 48.4% of the energy produced in the country comes from renewable sources, such as water, wind, solar, biogas and derived from sugar cane, and we still have the promising green hydrogen. Meanwhile, the world average of the energy matrix from renewable sources is 13.8%. For the country to expand its participation in the bioenergy market, the sector needs to invest in research and development, seeking solutions to increase production efficiency and sustainability. And this goes, of course, through an incentive policy by the Federal Government, which has already declared that this is an expensive and priority agenda.

Ethanol, the reality of the energy transition: As a representative of the sector and knowledgeable about processes, opportunities and challenges, I can say that ethanol has one of the most important roles in the energy transition for urban mobility, as it can reduce emissions by up to 70% of greenhouse gases compared to fossil fuel. We already have a strong and consolidated industry. We are the second largest producer of ethanol in the world, behind only the United States, responsible for just over 50% of world production, while in Brazil we produce about 27% of this biofuel. In the last crop, more than 27 billion liters of ethanol were produced in Brazil.

Currently, 20% of consumption in the Brazilian transport sector is renewable fuels, and the trend is for growth. It is worth highlighting some public policies to encourage the use of ethanol, such as the National Alcohol Program , created in 1975, which has contributed to boost bioenergy production in the country in recent decades. This was the greatest technological advance in the history of the Brazilian automobile industry and it was born because of the world oil crisis. The evolution of the program enabled the birth of a genuinely Brazilian technology, the car flex , which is now present in more than 80% of the light vehicle fleet in Brazil.

In current times, also because of oil, but because of the harmful effects of carbon dioxide emissions, a new mechanism for ethanol production was created, the National Biofuel Policy. Many of the positive results of recent years were due to this program. Launched in 2018, RenovaBio is an innovative program that brings together incentives for the production of biofuels and, consequently, for the reduction of greenhouse gas emissions, with the measurement of data that enable the editable calculation of this information.

With the implementation of the Biofuels Decarbonization Credit, RenovaBio now contains a financial instrument used to measure and credit greenhouse gas emissions avoided by the use of biofuels. This instrument made possible investments in the expansion of ethanol production oriented towards a more efficient energy transition, reinforcing the role of biofuels in the fuel matrix.

Based on the RenovaBio Program calculator, the sector has invested in new technologies and increased productivity to increase its efficiency, guaranteeing renewable production, reversing public policies towards a better environment for Brazil and the world. At a time when the world is discussing the regulation of the global Carbon Market, RenovaBio is an example of an innovative and functional initiative, with monitoring, reporting and verification, in addition to generating benefits and returns for emission reductions. It is enough for Brazil to assume that the bioenergy market is fundamental, in addition to generating jobs, income, investments and the availability of biofuels, for the decarbonization of Brazilian and global production.

Growing market: We are the world's largest producer of ethanol from sugarcane. And now, this thriving market is added, ethanol that has corn as a raw material. The production of this biofuel has been growing with the creation of new industries, especially in the Midwest, and the expectation is that the 2022, 2023 harvest will reach 4.5 billion liters. In Mato Grosso, almost 80% of ethanol production is from corn. Our state is proof that we can increase our bioenergy production while preserving our territory, maintaining its biodiversity.

We have a distinctive characteristic due to the production of ethanol from “second crop” corn, planted on the same land where soybeans were planted, without adding new agricultural areas. With this new industry, we have also increased the production of beef, as the residue is used to produce Dried Corn by Distillation, a protein compound used as animal feed and which has contributed to increasing the confinement of cattle, reducing the age of slaughter: more meat produced without increasing the area for livestock.

And Mato Grosso is already developing new technologies to increase the generation of bioenergy in Brazil. Relevant investment is in the production of biogas and biomethane from vinasse generated in the ethanol industries. The first component generates electricity, and the second replaces diesel in cars, further contributing to decarbonization.

In current times, economic growth must be linked to an environmental sustainability agenda. That is why Brazil has a chance to be a protagonist in this new global economic agenda. For the industry, it's not just about selling a good image to the rest of the world. This is not just an environmental agenda, this is an innovation agenda. It is, in particular, about economic and, consequently, social development. More money, more jobs, better income for the population. Everyone wins, the productive sector, both agricultural and industrial, population, nation and the world.