On Monday, May 12, Brazil's Minister of Mines and Energy, Alexandre Silveira, witnessed the signing of a Memorandum of Understanding (MoU) between Brazilian energy company Raízen Energia S.A. and Hong Kong-based SAFPAC Ltd. during his visit to China. The agreement establishes a strategic partnership to produce Sustainable Aviation Fuel (SAF) in the Asia-Pacific region, with Brazilian ethanol as the primary feedstock.

"Brazil is at the forefront of the global energy transition and is poised to lead sustainable solutions in the transportation sector. This partnership underscores the strategic value of our nation, Brazilian ethanol, and our cutting-edge technology in decarbonizing aviation on an international scale, as well as other industries," said Minister Silveira.

Under the agreement, Raízen will supply ethanol—including second-generation ethanol derived from sugarcane bagasse—which will be processed using Alcohol-to-Jet (ATJ) technology to convert it into renewable aviation kerosene. SAFPAC, a leader in Asia's low-carbon fuel transition initiatives, will spearhead efforts to replace fossil fuels with sustainable alternatives. While the MoU does not create binding purchase obligations, it marks a crucial first step toward advancing commercial and technical negotiations between the two parties.

Three-Phase Cooperation Plan

The partnership is expected to unfold in three phases:

Phase 1 (2025–2026): Annual demand of 170,000 tons of ethanol.

Phase 2 (2027–2029): Annual demand of 285,000 tons.

Phase 3 (2030–2033): Annual demand of 500,000 tons.

This collaboration aligns with Brazil's broader commitment to energy transition, energy security, and sustainable development, further solidifying its role as a global leader in biofuels and green aviation solutions.

Source:https://www.gov.br/mme/pt-br/assuntos/noticias/alexandre-silveira-participa-da-assinatura-de-acordo-para-producao-de-saf-entre-brasil-e-hong-kong