Brazilian fuel distributor Vibra Energia (Vibra) has extended its existing partnership with biofuel producer Brasil Biofuels (BBF) to move into producing and selling palm oil-based sustainable aviation fuel (SAF), BBF announced.

As part of the agreement, Vibra - formerly known as Petrobras Distribuidora - has agreed to sell SAF produced at BBF’s Manaus biorefinery, which was already set to provide the company with renewable diesel, according to the 13 April statement.

BBF said it would also be investing an additional US$43M in the venture, which would use oil from palm trees in the Amazon location of Roraima, Brazil’s northernmost state, as raw material.

The new venture would be based in the city of São João da Baliza, which was known for its tropical rainforest climate, BBF said, with palm oil from there processed into fuel at BBF’s Manaus plant in the neighbouring state of Amazonas.

Due to become operational in 2025, the plant would have a capacity of up to 250M litres/year of “green diesel” and 280M litres/year of SAF, BBF said.

Vibra chief executive Wilson Ferreira Junior said the move was in line with the company’s strategy of boosting its renewable energy portfolio through acquisitions and partnerships. The portfolio would include renewable power generation, biomethane, renewable diesel, ethanol and SAF, he said.

“From now on there will be a multi-energy platform for the energy transition,” Ferreira Junior said.

The partnership between Vibra and BBF was set to last for five years and could be renewed after that, BBF said.