XM does not provide services to residents of the United States of America.

Private group announces Brazil's two longest 'green fuel' pipelines

<html xmlns="http://www.w3.org/1999/xhtml"><head><title>Private group announces Brazil's two longest 'green fuel' pipelines</title></head><body>

By Ana Mano

SAO PAULO, June 24 (Reuters) -Brazil's privately owned Grupo Potencial will invest 200 million reais ($37 million) to build two "green fuel" pipelines in the south of the farm powerhouse, the company's Vice-President Carlos Hammerschmidt said on Monday.

The biofuelpipelines, which will be built starting next year if all permits are granted, will stretch 55 kilometers (34.2 miles) each and will the longest of the kind in the country.

One of the new pipelines will transport biodiesel and the other biofuels like ethanol, connecting the company's Lapa biodiesel plant to a cluster of fuel distributors. It will spare the environment of use thousands of tanker trucks and enable Potencial to boost its own clean fuels portfolio.

The plant sells 65,000 cubic meters of biodiesel monthly on average, and intends to transport half of this via one of the new pipelines.

Potencial's investment signals confidence that overall biofuels demand will rise as consumers demand less pollutant sources of energy, requiring efficient delivery options.

"It's a question of humanity's survival," Hammerschmidt said by telephone referring to the importance of growing global biofuels supplies to prevent ever-more common environmental disasters.

Brazilian biodiesel producers, with access to abundant raw materials like soy, are clearly at an advantage. Cargill and ADM ADM.N, among others, already produce biodiesel here while BP BP.L is expanding its biofuels clout.

Potencial's project will also be transformational for the state of Parana, a traditional farm region and home to Brazil's biggest biodiesel plant, the firm's own Lapa compound, with capacity for 900 million liters. The investment is likewise a boost to Brazil's underdevelopment energy pipeline network, which is about 5% of that of the United States, Hammerschmidt said.

Potencial makes biodiesel at Lapa and plans to sell corn ethanol and soy-based sustainable aviation fuel in the future.

By 2027, Hammerschmidt said, the country will also start demanding 1% of the fuel used on airplanes be "sustainable aviation fuel" known as SAF.

Brazil's current mandatory biodiesel mix into diesel is 14% and is slated to be 15% next March.

Potencial also announced a 100 million reais investment to grow Lapa's production of glycerine, which derives from biodiesel and is exported to China.

($1 = 5.3878 reais)

Reporting by Ana Mano
Editing by Marguerita Choy


Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.