Sumitomo Corporation do Brasil, Be8 sign agreement for SAF development in Europe

Photo: Be8

Sumitomo Corporation do Brasil, a subsidiary of Japanese conglomerate Sumitomo Corp., and Be8, part of the ECB Group and a leading Brazilian biodiesel producer, have signed a joint-development agreement (JDA) for the distribution of sustainable aviation fuel (SAF) in Europe.

The announcement was made in November at the Be8 booth in the Green Zone at COP30, taking place in Belém, Brazil, Nov. 10-21.

The partnership includes the evaluation of two business models: the supply of SAF from Be8’s Omega Green unit, currently under development in Paraguay, to Northern Europe; and the joint development of aviation fuel downstream infrastructure in that region to deliver a complete solution to the final customer.

Europe has set ambitious targets for SAF adoption in the jet-fuel mix.

The mandate began in January this year at 2 percent and is set to increase to 6 percent by 2030.

The new value chain to be built jointly by the two companies is expected to begin in 2029, coinciding with the start of operations at Be8’s new biorefinery—perfect timing to meet the anticipated increase in the European mandate, according to Be8.

The aviation industry has pledged to reach net-zero CO2 emissions by 2050, with SAF expected to contribute around two-thirds of the required emissions reductions.

Other solutions, such as hydrogen and electrification, still face technological hurdles.

“Scaling SAF is both a challenge and a global opportunity that will require entrepreneurship, long-term vision and the right partners, and our company has a background in building new biofuel markets through strategic partnerships,” said Be8 President Erasmo Carlos Battistella. “An essential part of building a new value chain with SAF is understanding the logistical challenges involved, and this partnership will allow us to design a comprehensive solution.”

SAF production from Be8’s Omega Green is expected to be among the most cost-competitive globally, the company stated, thanks to the asset’s strategic advantages and location.

This cost advantage is complemented by Sumitomo’s expertise and global presence.

“This partnership with Sumitomo brings together companies with complementary expertise to create a new value chain,” Battistella added. “Our projections indicate a production cost in the first quartile of the global SAF cost curve, with access to competitive feedstock, efficient logistics, low taxes and competitively priced renewable electricity.”

Takamasa Ueda, Sumitomo Corporation do Brasil’s senior director and head of energy innovation, said, “The global aviation market requires more scalable SAF supplies, especially SAF applicable for the EU standard. Given the scale of the agriculture industry in South America, there is great potential to expand the SAF supply to support increasing global SAF demand. We wish to contribute such SAF supply development in South America utilizing our global networks and expertise. Be8 has a great feedstock network and existing biofuel production capabilities. We strongly believe Be8 and Sumitomo can jointly unlock further business opportunities in biofuel sector globally.”

Omega Green is a world-class biorefinery under development in Paraguay that will produce SAF, renewable diesel and green naphtha using hydroprocessed esters and fatty acids (HEFA) technology.

All SAF supplied under the Sumitomo partnership will be produced from residual EU Refuel-eligible feedstock.

To ensure the highest quality standards and sustainable production, Be8 said it maintains certifications that attest to safety, good manufacturing practices and the origin of raw materials—enhancing the value of its products in both domestic and international markets.