Be8 advances in internationalization, invests in innovation and maintains leadership in the biodiesel market

The advance to the United States market, the investment in new biofuel production technology and the launch of the cereal-based ethanol production project marked the year under Be8's new institutional identity. "The year 2023 was characterized by actions that point to a new strategic positioning in the direction of building a global technology company, focused on renewable energies, with investments in innovation and advancement in the internationalization process," said Erasmo Carlos Battistella, president of Be8, during the launch of the new edition of the Sustainability Report.

Launched on 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 performance in the period.

The Report presents an Economic Impact Study, carried out by the Institute of Economic Research Foundation – 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 contributed directly and indirectly with 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 assessed that, in 2021, Be8 was responsible for 53.59% of Marialva's GDP, having generated 2 thousand additional jobs directly or indirectly. The total contribution (direct and indirect) of Be8 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, a drop in commodity prices (soybean prices fell by about 20% in the year), lower consumption of biofuels in Brazil in the first quarter of last year (with a blend of 10% - B10 in the period) and an average price reduction of 30% (ANP data),  which explain the company's results for the year. In the period, Be8 reached a net revenue of R$ 7.2 billion, a reduction of 23% compared to the previous year. EBITDA reached R$ 298 million, 16% lower compared to 2022.

 

In 2023, Be8 produced, in all its units, 891,454 m³ of biodiesel. 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 in Marialva (PR) and Passo Fundo underwent expansions in 2023, reaching a capacity of 540 million liters of biodiesel/year each.

Be8 exported around 85 million liters of biodiesel in 2023, an increase of 57% compared to the previous year. This growth was basically due to the first exports to the United States, inaugurated last year, which represented 53% of the operations in the period. "The success of biodiesel exports is a demonstration that we have the quality, capacity and price to conquer these more demanding markets," Battistella said. In total, 20 countries received products offered by Be8.

Predictability

On the other hand, the decision of the National Energy Policy Council (CNPE) to increase the mandate for biodiesel to 14% in March 2024 and to 15% in March 2025 created a positive outlook for recovery and growth by returning to the market the predictability that the industrial sector so desired.

"The approval of the Fuel of the Future 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 strengthen our industry, consolidating the country and South America as a reference in clean energy," Battistella said. The bill 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 the road, waterway, maritime and rail modes, as well as equipment to produce minerals. 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 negotiations of product offer contracts with interested companies.

Portfolio diversification

In 2023, the company took an important step towards diversifying its sustainable fuels 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. Construction is expected to begin in 2024.

The operation will have important differentials, such as the use of abundant raw materials in the region (wheat, corn, triticale, rice and sorghum) to produce anhydrous and hydrous ethanol. The unit will also manufacture bran from the production of ethanol, known as DDGS (Distiller's Dried Grains with Solubles, 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 usually used as an additive in baking. The integration of the production line into the ethanol process makes it possible to take advantage of the same raw material, extracting the protein from the cereal to produce gluten and starch for the biofuel. The unit will have the capacity to produce 27,000 tons/year of vital gluten.

In March of this year, the National Bank for Economic and Social Development (BNDES) approved financing in the amount of R$ 729.7 million for the construction of an ethanol and bran plant, of which R$ 500 million came from the BNDES More Innovation Program.

Internationalization

In the international market, Be8 carried out the first Brazilian biodiesel export operation to the United States. The volume was certified Renewable Fuel Standard (RFS) by the United States Environmental Protection Agency (EPA). The pioneering spirit was already remarkable in the Company since 2013, when it inaugurated the trade of Brazilian biodiesel with the European Union, among other significant operations carried out over the years.

At the same time, the company advanced in internationalization, with the acquisition of a biodiesel and soybean products plant in La Paloma del Espíritu Santo, Paraguay. The acquisition reaffirms the company's position to diversify investments and internationalize the company. Also in 2023, Be8 started grain import operations from Paraguay, acquiring significant volumes of soybeans to meet the demands of the industry. 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 suitable for the requirements of the Brazilian and international markets. 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 by 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 to meet the sustainability criteria required by the certifications.

Omega Green

In 2023, Be8 increased the production scope of the Omega Green biorefinery to magnify 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 20,000 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). The investment in the project is expected to reach more than US$1 billion – the largest private investment in Paraguay's history – and allow its operations to begin in 2027.

 

Be8 Profile

Be8 is a global renewable energy company that implements new energy matrices through a circular innovation ecosystem. With a focus on production that ensures a future with natural resources, the company makes sustainable deliveries to people, businesses and the planet. The Company is part of the holding company ECB Group and was founded in 2005. The Company's headquarters are in Passo Fundo (RS), and we have administrative offices in São Paulo (SP) and Geneva, Switzerland, responsible for marketing our production in Passo Fundo (RS), Marialva (PR), La Paloma (Paraguay) and Domdidier (Switzerland).

Be8 Profile

Be8 is a global renewable energy company that implements new energy matrices through a circular innovation ecosystem. With a focus on production that ensures a future with natural resources, the company makes sustainable deliveries to people, businesses and the planet. The Company is part of the holding company ECB Group and was founded in 2005. The Company's headquarters are in Passo Fundo (RS), and we have administrative offices in São Paulo (SP) and Geneva, Switzerland, responsible for marketing our production in Passo Fundo (RS), Marialva (PR), La Paloma (Paraguay) and Domdidier (Switzerland).

 

Passo Fundo (RS)

Production capacity: 540 million liters of biodiesel/year and 3,400 tons of processed soybeans/day.

From 2010 to 2021, Be8 contributed, directly and indirectly, 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.

In 2021, Be8 collaborated, directly and indirectly, with the generation of more than 11 thousand additional jobs in Passo Fundo.

In 2021, Be8 accounted for 22.5% of the city's GDP.

 

Marialva (PR)

Production capacity: 540 million liters of biodiesel/year.

The total contribution (direct and indirect) of Be8 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 company contributed, directly and indirectly, to the generation of about 2 thousand additional jobs in the city in 2021.

In 2021, Be8 was responsible for 53.59% of the city's GDP.

The Marialva unit has already been expanded five times. Since the inauguration of the plant, its production capacity has almost tripled, reaching 540 million liters of biodiesel/year in 2023. In the same year, we obtained authorization for a new capacity expansion to 540 million liters of biodiesel/year in Passo Fundo.

 

La Paloma, Canindeyú, in the Paraguay département

Production capacity: 5.47 million liters of biodiesel/year and 54,750 tons of processed soybeans/year.

In La Paloma, Paraguay, with the start of the Be8 management, crushing activity almost doubled in 2023 and biodiesel production was higher than in all of the previous five years combined.

 

Domdidier (Freiburg) - Switzerland

Production capacity: 5 million liters of biodiesel/year.