en.Wedoany.com Reported - Marcos Guerra, CEO of Brazilian energy company Energis8, said on July 14 that the company plans to produce approximately 1 billion liters of sustainable aviation fuel (SAF) annually, with the main plan expected to be finalized by the end of this year.

The company, also known as E8R, will adopt a tolling model to produce aviation fuel, where customers supply ethanol to Energis8 and pay a processing fee for conversion into SAF. In an interview with Reuters, Guerra stated that this mechanism will keep fuel prices below spot market levels. Brazil is one of the world's leading ethanol producers, and although historically sugarcane-based, production from corn and other grains has grown rapidly in recent years, with industry leaders actively pushing to expand into marine and aviation fuel sectors.

Guerra said the project is expected to begin operations in 2031, requiring a total investment of $1.3 billion. He expressed confidence that the global trend of replacing fossil fuels with renewable energy will continue to strengthen. "This decision will not be reversed," he said in São Paulo. The project will be located in Paulínia (SP), leveraging its proximity to major aviation hubs such as Guarulhos and Viracopos in Campinas.

Guerra noted that although SAF prices are currently higher than fossil-based aviation fuel, costs will approach parity in the future. He expects that "in the aviation sector, renewable energy prices will be lower than or equal to oil," and believes the tolling model can mitigate SAF price volatility risks. The project will require 1.7 billion liters of ethanol annually as feedstock, with customers paying a processing fee per liter.

Guerra currently holds 85% of the company's shares, with the remaining 15% held by three unnamed executives. He said approximately 40% of the project financing will come from equity, with the remainder from debt.