The world’s biggest supplier of ethanol made from sugar cane is considering building an SAF plant in its home country of Brazil, Bloomberg reported. “We truly believe that there is a structural advantage to producing in Brazil,” the top sugar-cane-growing nation, Raizen SA Vice President of Trading Paulo Neves said.
The company, owned by Shell Plc and Cosan SA, sees economic sense in producing SAF in Brazil given it requires such large volumes of the feedstock. Shipping costs for exporting the final product would be 70% less than the cost of exporting ethanol for processing into jet fuel abroad, Neves said.
Still, plans for a local SAF factory are in early stages and Raizen is still analyzing the economics of such a plant. A Brazilian SAF plant would be competing in the global market with factories located in countries that already have tax incentives in place, Neves said.
