Brazilian city backs new biofuel as global energy uncertainty deepens

The southern Brazilian city of Passo Fundo is moving to shield its municipal operations by embracing a new locally produced biofuel capable of replacing diesel outright.
Surrounded by vast soybean plantations in Rio Grande do Sul, the city has begun introducing an advanced renewable fuel derived from soy, animal fats and recycled oils, Reuters reported.
Unlike conventional biodiesel, which is blended with fossil diesel at low proportions, this new formulation is designed to serve as a full substitute in any diesel engine, offering a route to lower emissions and greater energy resilience. The fuel, branded BeVant, is produced by Be8 — one of Brazil’s leading biodiesel manufacturers — which secured regulatory approval in late 2024 to begin commercial output at its Passo Fundo facility.
Initial annual production is expected to reach 28 million litres. As a drop‑in fuel, BeVant requires no engine modifications, making adoption straightforward for public fleets.
The city’s decision comes as crude prices surge amid the US–Israeli war on Iran, raising concerns about potential diesel shortages across Brazil.
Although the fuel currently costs more than traditional diesel, Be8 says it remains significantly cheaper than green diesel alternatives such as HVO. Passo Fundo officials expect prices to fall as production scales, paving the way for wider use across the city’s fleet in the coming years.
When the first stage of the rollout is complete, 17 Passo Fundo vehicles - including trucks, backhoes and a minibus - will tank ​up with BeVant, requiring some 10,000 liters per month.
Brazil, which imports about a quarter ​of the diesel ⁠it consumes, is on track for a record soybean harvest this year, leading soy crushers and biodiesel producers to push the government to allow higher biodiesel blends.