A city in southern Brazil has stepped up the use of a new biofuel in its municipal vehicles as concerns grow over diesel supply due to tensions in the Middle East, The Times of India reported.
Passo Fundo has begun using a diesel alternative made from soy, animal fats and used oils in its fleet. The fuel is designed to fully replace diesel in existing engines, while also helping reduce emissions and fuel costs.
The move comes as global energy markets remain uncertain, with rising crude oil prices raising fears of diesel shortages.
The fuel, known as BeVant, is being produced by Be8, which received approval in late 2024 to manufacture it in the city. The plant has an initial annual capacity of 28 million litres, and the company says the fuel can be used in regular diesel engines without any changes.
Mayor Pedro Almeida said the initiative could help reduce the impact of rising oil prices and provide some relief from supply concerns. He added that the fuel has strong potential as a competitive option.
While the price of the new fuel has not been disclosed, the company said it is about 15 percent more expensive than biodiesel but cheaper than green diesel. Officials expect the cost to come down as production increases.
In the first phase, 17 vehicles, including trucks, backhoes and a minibus, will use around 10,000 litres of the fuel each month. The city plans to expand its use across its fleet in the coming months.
Brazil imports about a quarter of its diesel needs, even as it is set to harvest a record soybean crop. Industry players have been calling for increased use of biofuels to reduce dependence on imports.
Be8 Chief Executive Officer Erasmo Carlos Battistella said the company is also in talks with businesses looking to cut emissions. Apart from Passo Fundo, the fuel is being used in the Copa Truck racing series, as well as by logistics firms and city bus services.
