Brazil's fuel sector expands: palm oil biofuel push and AmericanOil acquisition

The Brazilian palm oil chain, with 283,000 hectares already planted and annual output of about 700,000 tonnes, is positioning itself as a growth engine for the country's biofuel industry. Industry estimates suggest the cultivated area could double, potentially benefiting up to 25,000 family farms that currently manage roughly 14% of the land and supply more than 22% of production. The crop is seen as a competitive feedstock for advanced diesel (HVO) and sustainable aviation fuel (SAF), but expansion faces hurdles such as the loss of supportive policies, zero‑rate import tax exemptions for foreign oil, and high transport costs from the North to demand centres in the South, Southeast and Central‑West.

In parallel, a major fuel company has secured regulatory approval to acquire the distributor AmericanOil, aiming to strengthen its market position in the southern states of Santa Catarina and Rio Grande do Sul. The deal is expected to integrate operations, improve service quality and pricing for local consumers, and reflects a broader trend of consolidation within Brazil's fuel sector.