BSBIOS

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BSBIOS banks social and economic gains, local and national, through its sustained excellence in biodiesel production and industrial development.

As Brazil’s biodiesel boom shows no signs of letting up, the nation continues to diversify its choice of crops to meet demand. The industry is gaining definition, the market leaders are separating from the pack, and the biggest developments differentiating front-running companies are the smart sourcing of raw materials with sustained, impressive rates of production. One of the leading Brazilian states growing with the industry surge is Rio Grande do Sul; the state home to a project run by one of the best known, most celebrated biodiesel groups around.

Founded in 2005 and equipped with a modern plant capable of producing (by installed capacity) 160 million litres of biodiesel per year, BSBIOS Indústria e Comércio de Biodiesel Sul Brasil (“BSBIOS”) has cut out the need for any middle-man logistics and set up shop in the heart of Grande do Sul’s soybean and canola country in Passo Fundo. BSBIOS are an innovative, technologically experienced and pro-crop diversity bunch—characteristics which have proved attractive enough to convince one of Brazil’s biggest names in energy to jump on board. In early July 2011, news broke that (Petrobras) Petroleo Brasileiro SA’s subsidiary, Petrobras Biocombustivel SA, had acquired a 50 per cent stake in the BSBIOS Passo Fundo plant for US$128 million.

“This partnership strengthens the structure of large companies that participate in a market that is still new, such as biodiesel in Brazil, and in my opinion it is also important to have well-structured companies to support the growth of this market,” BSBIOS President Erasmo Carlos Battistella tells IRJ.

“This partnership is important for BSBIOS—we are currently the only company associated with Petrobras Biofuel Biodiesel production worldwide—and the skills that unite our two companies, Petrobras and BSBIOS.”

Like any trailblazing vehicle capable of securing first-mover advantage and staying on top of technological trends in our emerging renewable energy markets, BSBIOS has a president to uphold. It isn’t easy to stay ahead of the game—even if you are propelled by an unrivalled owner/partner scenario with the nation’s biggest energy house—and the company’s plans for sustained, successful growth demonstrate what it truly takes to lead the way as biodiesel explodes onto Brazil’s energy markets.

Local and national agendas

According to Battistella, Brazil’s energy matrix is the cleanest in the world in terms of its natural propensity for all sorts of renewable energy, “be it biodiesel, ethanol, electricity, or biomass bioelectricity.

“As the name [renewable energy] implies, we are always refreshing, and any time we are bringing renewed environmental benefits, economic and social benefits to the country and for the whole world.”

BSBIOS strategically positioned its plant in Passo Fundo, surrounded by the canola and soybean growing industry, and has delivered substantial social and economic benefits to the region by doing so. Its BSBIOS Step Fund, along with other industrial investments in the locale, will reportedly double the area’s GDP to revenue heights of up to US$1 billion; a clear indication of the further reaching economic draws associated with adding a prosperous biodiesel industry at a local level. In terms of social concerns, BSBIOS participates in several community initiatives for Passo Fundo including the new National Day of Literature it supports, the National Capital Passo Fundo Literature and supporting the Home Emiliano Lopez foster home for young, vulnerable people.

“The city of Passo Fundo has always historically been recognised as a hub city, a regional capital, and has—especially in the areas of health and education—two strong pillars of development,” Battistella explains.

“With the arrival of the project of BSBIOS and other major industries that are being installed, as well as health and education of the pillars, the pillar industry became very strong in Passo Fundo, contributing to a doubling of industrial GDP, generating more jobs, income aggregating the raw materials produced throughout the region and, thus, generating development across the northern region.”

In terms of national impact the BSBIOS-Petrobras relationship says it all. In May 2010, Petrobras Biocombustível and BSBIOS Marialva Indústria e Comércio de Biodiesel Sul Brasil S.A inaugurated a biodiesel plant in Marialva, in Brazil’s Paraná state, and news that the Passo Fundo plant would follow suit was welcomed in 2011. The recent decision to team up again was also well-timed, as government targets stipulated an increase in ethanol production to meet 12 per cent of national demand; a substantial increase from the current total of five per cent. This proved yet again that BSBIOS was braced to move ahead of the times and position itself in the right setting for its plant, partnerships and growth strategy.

Encouraging growth

Battistella says that while BSBIOS largely relies on soy as its raw material today, the company is focused on diversifying its crops-for-fuel because “the fuel industry is an area that requires punctuality and availability of supply.” The canola cannot stand up against soy yet, he says, because (particularly for 2011) its conditions for growing have not been up to scratch. However that does not mean that all is lost, and BSBIOS is working to apply the same sorts of technology it uses for soybean to assist farmers in optimising canola’s farming and production infrastructure. This also ensures the health of the company, Battistella explains, because in the years to come when the planting and cultivation conditions of other crops are compromised, BSBIOS will utilise its early efforts in canola to meet demand and remain flexible in sourcing material.

“You need to improve every day depending on market competitiveness—agricultural markets and soybean biodiesel are very competitive.

Constant technological improvement and innovation are critical to maintaining a company’s competitiveness in the market it serves,” he states.

“BSBIOS wants to maintain its historical growth—a process based on top of a highly competitive and innovative technology—based on a differentiated logistics base and excellence [managing] it. We will continue to grow in the biofuels market.”

Biodiesel is big news worldwide, but often we only ever hear half of the story. True success in this burgeoning industry involves going beyond best practise and working to better the lives of all concerned, locally and nationally. BSBIOS has harnessed the ethos of renewable energy, as well as its economical and socially beneficial implications, and the company continues to work towards building a strong energy map for Brazil. Backed by the biggest in the business, with a track record of production excellence and leading the industry, BSBIOS encapsulates what it really takes to ride the biofuels boom and prosper. 

~ Quotes contained in this article have been translated from Portuguese to English.

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