The advance into the United States market, investment in new biofuel production technology and the launch of the cereal-based ethanol production project marked the year under the new institutional identity of Be8. The year 2023 was characterized by actions that point to a new strategic positioning towards building a global technology company, focused on renewable energy, with investments in innovation and advancement in the internationalization process.
Launched this Monday, April 15, in Passo Fundo (RS), the Report presents the company’s main advances in the pillars of environmental preservation, social development and good governance practices (ESG), as well as its operational and financial period.
The Report presents an Economic Impact Study, carried out by the Fundação Instituto de Pesquisas Econômicas – FIPE, in 2021, which indicates that Be8 was responsible for 22.5% of Passo Fundo’s GDP, having generated 11 thousand additional direct and indirect jobs. From 2010 to 2021, the company directly and indirectly contributed R$19.9 billion to the city’s GDP (at 2021 prices). Tax collection in the municipality had a net increase of R$3.4 billion between 2005 and 2021.
The same study estimated that in 2021, Be8 was responsible for 53.59% of Marialva’s GDP, having generated 2 thousand additional jobs directly or indirectly. Be8’s total contribution (direct and indirect) to Marialva’s GDP between 2010 and 2021 was R$7.2 billion (at 2021 prices). The net increase in total tax collection in the municipality between 2010 and 2021 reached R$1.1 billion.
The strategic transition in 2023 took place in a challenging macroeconomic context, with high interest rates, falling commodity prices (soybean prices fell by around 20% in the year), lower consumption of biofuels in Brazil in the first quarter of last year (with a mix of 10% – B10, in the period) and an average price reduction of 30% (data from ANP), which explains the company’s results for the year. Be8 achieved net revenue of R$7.2 billion in the period, a 23% reduction compared to the previous year. EBITDA reached R$298 million, 16% lower compared to 2022.
In 2023, Be8 produced 891,454 m³ of biodiesel in all its units. In Brazil, the company maintained its leadership for another year with a volume of 801,427 m³ sold in the country and 10.9% of the sector’s market share. The industrial units of Marialva (PR) and Passo Fundo underwent expansions in 2023, reaching a capacity of 540 million liters of biodiesel/year each.
In 2023, Be8 exported around 85 million liters of biodiesel, an increase of 57% compared to the previous year. This growth was basically due to the first exports to the United States opened last year, which represented 53% of operations in the period. The success of biodiesel exports is a demonstration that we have the quality, capacity and price to conquer these most demanding markets. In total, 20 countries received products offered by Be8.
On the other hand, the decision by the National Energy Policy Council (CNPE) to increase the biodiesel mandate to 14% in March 2024 and to 15% in March 2025 created a positive perspective for recovery and growth by returning predictability to the market. that the industrial sector so desired.
The approval of the Future Fuel Bill in the Chamber of Deputies was another very positive sign to consolidate a legal framework that allows the advancement of various biofuels in Brazil and creates conditions to expand biodiesel exports, which will reinforce our industry, consolidating the country and South America as a reference in clean energy. The project is now under analysis in the Federal Senate.
Be8 BeVant – the brand of innovation
One of the main announcements in 2023, Be8 BeVant is a new biofuel that can be used 100% pure in diesel engines and is indicated to meet the demands of the logistics, public transport and cargo sectors in road, waterway and maritime modes. and railway, as well as equipment for the production of ores. The innovation represents an investment of R$80 million in research, development and the construction of a new production line in Passo Fundo (RS), which will have the capacity to produce 150 million liters/year.
The project follows its schedule with the product expected to be offered in the fourth quarter of this year. The testing phase on Euro VI engines on a test bench was passed and proved the advantages and characteristics of the product. The Demonstration and Validation Program is underway in partnership with manufacturers and fleet owners. Be8 also conducts product supply contract negotiations with interested companies.
Portfolio diversification
In 2023, the company took an important step towards diversifying its sustainable fuel portfolio, with the announcement of the construction of an ethanol plant in Passo Fundo (RS). With an investment of R$1 billion, the factory will occupy a total area of 80 hectares. The expectation is that works will begin in 2024.
The operation will have important differences, such as the use of raw materials abundant in the region (wheat, corn, triticale, rice and sorghum) for the production of anhydrous and hydrated ethanol. The unit will also manufacture bran from ethanol production, known as DDGS (Distiller’s Dried Grains with Solubles or Dried Distillery Grains with Solubles, in Portuguese), which has great potential for use in the production of animal feed.
Another major highlight of the plant will be the production of vital gluten, a powdered protein concentrate obtained from wheat flour and normally used as an additive in baking. The integration of the production line into the ethanol process makes it possible to use the same raw material, extracting the protein from the cereal to produce gluten and starch for biofuel. The unit will have the capacity to produce 27 thousand tons/year of vital gluten.
In March this year, the National Bank for Economic and Social Development (BNDES) approved financing worth R$729.7 million for the construction of an ethanol and bran factory, with R$500 million of the total coming from the BNDES Mais Inovação Program. .
Internationalization
In the international market, Be8 carried out the first Brazilian operation to export biodiesel to the United States. The volume had the Renewable Fuel Standard (RFS) certification from the United States Environmental Protection Agency (EPA). The Company’s pioneering spirit has been evident since 2013, when it opened trade in Brazilian biodiesel with the European Union, among other significant operations carried out over the years.
In parallel, the company advanced in internationalization with the acquisition of a biodiesel and soy-derived products factory, in La Paloma del Espíritu Santo, in Paraguay. The acquisition reaffirms the position of diversifying investments and internationalizing the company. Still in 2023, Be8 began importing grains from Paraguay, acquiring significant volumes of soybeans to meet industry demands.
At the same time, the company began to offer direct transportation of soybeans and corn to the end customer, originating in La Paloma, through commercial partnerships established in Paraguay.
Sustainable Supplier
As part of the internationalization strategy and to strengthen the production chain, Be8 developed the Be8 Sustainable Supplier Credit Program (2SC), which offers support and incentives for suppliers to obtain sustainable certifications, increasing the volume of biodiesel suited to the demands of the Brazilian markets. and international. The program was launched in 2022 and, in 2023, the company made the first payments in the form of Decarbonization Credits (CBIO) to certified suppliers.
Technology for traceability
In addition to encouraging the certification of suppliers through the 2SC Program, in 2023, the company implemented an additional mechanism to enhance soybean traceability, with the use of satellite platforms. The technology makes it possible to check whether or not there has been deforestation in the regions where the grain is grown. The main objective is to generate business opportunities as well as meet the sustainability criteria required by certifications.
Omega Green
In 2023, Be8 increased the production scope of the Omega Green biorefinery to increase the production of renewable aviation fuel SPK (Synthetic Paraffinic Kerosene) – also known as Sustainable Aviation Fuel (SAF). The unit will also be able to produce renewable diesel HVO (Hydrotreated Vegetable Oil) and Green Naphtha, used in the chemical industry to make green plastic, among other products. The capacity will be 20 thousand barrels/day of HVO and/or SPK. Another input already planned is Green LPG, a renewable gas produced from organic raw materials, such as vegetable oils and animal fats, identical to traditional liquefied gas (LPG). Investment in the project is expected to reach more than US$1 billion – the largest private contribution in Paraguay’s history – and allow operations to begin in 2027.