Abra, Sumitomo Brazil team up on SAF

Abra Group, which operates Gol, Avianca and Wamos Air, and Sumitomo Corporation do Brazil have signed an agreement to accelerate aviation sector’s decarbonisation.

Under the agreement, both Abra and Sumitomo will jointly engage with stakeholders, including both the Brazilian and Japanese governments, for the realisation of a Brazil-Japan Joint Crediting Mechanism (JCM).

Building upon this, the two will then pave the way for a long-term offtake agreement of sustainable aviation fuel (SAF) between Abra and Sumitomo.

Brazil is well positioned to become a leading global SAF producer, supported by abundant feedstocks, a longstanding ethanol and biodiesel tradition and a strong commitment to renewable energy.

However, securing financing for SAF projects – and ensuring Brazilians continued access to essential, affordable, aviation – remain key challenges.

The Brazil-Japan JCM has the potential to bridge these gaps.

“At a time when financing for SAF projects is particularly challenging due to market uncertainties, demand constraints and evolving regulations, creative solutions that leverage the strengths of different global regions are the best path forward,” said Maria Del Mar Whittaker, chief corporate responsibility officer, Abra Group.

“Our collaboration with Sumitomo will focus on establishing a fair and transparent implementation structure to support the growth of Brazil’s SAF industry and promote truly sustainable solutions while addressing the critical issue of price.”

“Sumitomo is actively engaged in SAF market development worldwide, and strongly believes that Brazil, with its abundant feedstock resources, has tremendous potential to become a major SAF supply hub for the global market,” said Takamasa Ueda, senior director and head of Energy Innovation Initiative, Sumitomo Corporation do Brasil.

“Our proposed scheme brings together the complementary strengths of Brazil and Japan to create a solution that is both economically viable and environmentally sustainable.”