JetBio, a U.S. company, says it will build a $2 billion plant in Paulinia, in São Paulo state, to make renewable diesel from ethanol. The project starts from an earlier plan aimed at producing sustainable aviation fuel, or SAF. JetBio is now trying to lower its risk as growth in aviation biofuel demand has been slower than hoped.
The company is run by Summit Agricultural Group. JetBio will use technology it will license from Honeywell UOP. That know-how will let the plant change output. It can make either renewable diesel or SAF. The choice will depend on what buyers want and on the deals JetBio signs.
JetBio expects to take in 1.8 billion liters of ethanol each year. If it stays on track, the company could become the biggest single ethanol buyer in Brazil.
In an interview with The AgriBiz, Chief Executive William Moore said the plant can be set up for different product mixes. He said the company could sell 100% SAF or 100% renewable diesel, based on contract terms.
Moore also noted that this setup may open another lane for Brazil’s ethanol industry. This matters as ethanol makers look for fresh uses for corn-based ethanol. They also expect more pressure on regular fuel demand as more vehicles use electric power.
Financing and construction timeline
JetBio says it will fund a $2 billion project using a mix of debt and equity that is close to even. The company started talking with Brazil’s BNDES in May. JetBio believes the development bank will be a key part of the deal.
Moore added that BNDES may be able to back the project with about $500 million. Still, this is not a firm loan yet and is not a signed agreement. JetBio is also in talks with other Brazilian lenders. It is weighing another $500 million from U.S. debt financing.
JetBio expects to lock in the full financing plan by March 2027. After that, building is expected to last about 30 to 36 months. The firm says production should start in 2030.
During construction, the project is set to support roughly 3,000 jobs. After the plant opens, it expects around 400 jobs once operations begin.
Ethanol demand and export markets
The plant plans to get ethanol from FS, a Brazilian corn ethanol business where Summit has a 43% share. Amaggi, an agricultural group, holds 40%. The last 17% sits with other agribusiness backers in Brazil.
FS will send ethanol made at its own sites. It will also buy extra quantities from outside producers to fill gaps. JetBio said talks were underway with 22 possible suppliers.
JetBio expects to ship close to 80% of what the plant makes. This would be for SAF or renewable diesel. The rest would be sold inside Brazil. The firm also wants the site to be named an Export Processing Zone. If it gets that status, it may receive tax help. The condition is that exports must be at least 80% of output.
For renewable diesel, the focus will be on areas that are hard to electrify. That includes shipping, mining, heavy industry, farming, and trucks that run on heavy routes.
Moore added that the renewable diesel market is roughly five times the size of the aviation fuel market. He said this could mean a wider set of buyers as SAF demand grows.
Lower emissions, higher costs
JetBio says its renewable diesel will look similar at the molecular level to regular petroleum diesel. The company adds that it can run in current diesel engines without any blending. It also says this fuel is not the same as biodiesel. In Brazil, biodiesel is mainly made from soybean oil and from animal fats.
JetBio puts the greenhouse gas cut at about 65% to 95% versus fossil diesel. The result depends on what ethanol source is used and how the refinery makes its energy.
Moore noted that renewable diesel is still likely to cost more than conventional diesel. JetBio wants to keep costs in check. At the same time, it is trying to lock in ethanol that has a low carbon intensity score.
Moore also pointed to an edge over SAF. He said renewable diesel may benefit from using regular ethanol. He noted that SAF can need pricier inputs to satisfy sustainability certification rules.
The effort started as a plan for a dedicated SAF plant. The early goal was over 770,000 metric tons each year. JetBio later changed the plan. The same site could make either fuel. The blend would then depend on what the market needs.
Moore said the next six months matter a lot. During that time, the firm will push ahead on talks for financing. It will also work toward a final investment decision.
