Fuel of the Future

The Fuel of the Future Bill, signed into law by President Lula, aims to attract at least R$260 billion in private investment, consolidate Brazil's leading position in the global energy transition, and decarbonize the transportation matrix, avoiding the emission of 705 million tons of CO₂ by 2037, according to the Federal Government.

The law is also connected to other government programs – such as the Mover Program (Green Mobility and Innovation Program) –, which promote innovation, decarbonization of vehicle fleets and expansion of markets. It also integrates Brazilian agriculture with biofuels, with emphasis on the use of renewable raw materials and national technologies for land, air and sea transportation.

Its main points include:

Green diesel: Establishes mandatory addition to regular diesel (up to 3%) and encourages its production and sale;
Sustainable Aviation Fuel (SAF): Requires airline operators to reduce CO₂ emissions, starting at 1% in 2027 and reaching 10% in 2037, according to ANAC and ANP calculations. Embraer aircrafts, for example, are authorized to operate with up to 50% ethanol;
Biomethane: Promotes the use of biogas as an alternative to natural gas, with emission reduction targets of 1% per year and mandatory certification from 2026 onwards.

Blend Increase:

Ethanol in gasoline: The minimum rises from 18% to 22% and the maximum rises from 27.5 to 35%;
Biodiesel in diesel: 1% annual increase, reaching 20% by 2030;
Carbon Capture and Storage (CCS): Regulates storage in geological formations, with authorizations valid for 30 years;
Synthetic fuels: ANP will be responsible for regulating and supervising the production of these fuels as an alternative to fossil fuels.

Strategic Objectives

Mandatory blending and new fuels

Fuel	Current Blend	Future Blend (Target)
Green Diesel	0%	Up to 3%
Ethanol in Gasoline	18% - 27,5%	22% - 35%
Biodiesel in Diesel	12%	20% by 2030

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