Net Zero Compare

Brazilian City Pilots Biofuel to Fully Replace Diesel in Urban Transport

Maílis Carrilho
Written by Maílis Carrilho
Updated on March 27th, 2026
5 min read
Published Mar 27, 2026

A city in Brazil has launched a large-scale pilot programme to test a next-generation biofuel that can fully replace fossil diesel in urban transport. The initiative targets one of the most difficult sectors to decarbonize, heavy-duty road transport, where high energy density and long operating hours have traditionally limited low-carbon alternatives.

The trial involves running municipal buses on a renewable fuel derived from biological feedstocks. Unlike conventional biodiesel, which is typically blended with fossil diesel at low ratios such as B10 or B20, the new fuel is designed to function as a complete substitute. This allows operators to use it at 100% concentration without requiring major engine modifications.

City authorities are working with fuel producers, public transport operators, and technical experts to assess the fuel’s performance under daily operating conditions. The goal is to determine whether the biofuel can match or exceed diesel in reliability while delivering substantial emissions reductions.

Performance, Emissions, and Operational Testing

The pilot is structured to collect detailed data across several key metrics. These include fuel efficiency, engine durability, maintenance needs, and exhaust emissions. By using existing buses on standard routes, the trial provides a realistic picture of how the fuel performs under stop-and-go urban conditions.

Initial expectations are that the biofuel could significantly reduce lifecycle greenhouse gas emissions compared with fossil diesel. Depending on feedstock sourcing and production pathways, advanced biofuels can achieve emissions reductions of up to 70 to 90%. In addition to carbon savings, they may also lower particulate matter and other pollutants, contributing to improved urban air quality.

A critical aspect of the trial is verifying that these environmental benefits hold across the entire value chain. Lifecycle analysis will be used to assess emissions from feedstock cultivation, fuel production, distribution, and end use.

Leveraging Brazil’s Biofuel Expertise

Brazil has a long-standing biofuel industry, making it a natural testing ground for advanced alternatives to diesel. The country is a global leader in ethanol production and has an established biodiesel market supported by national blending mandates and agricultural supply chains.

Building on this foundation, the development of advanced biofuels for heavy transport represents a logical next step. It aligns with Brazil’s broader climate commitments and its strategy to reduce emissions while maintaining energy security and supporting domestic industries.

The availability of feedstocks such as soy, waste oils, and other biomass resources provides a strong basis for scaling production, although sustainability considerations remain central to long-term viability.

A Practical Pathway for Transport Decarbonization

For transport operators, one of the most attractive features of the new biofuel is its compatibility with existing diesel engines. Fleet electrification, while expanding globally, requires significant capital investment in new vehicles and charging infrastructure. Hydrogen-powered solutions, meanwhile, are still in early deployment stages and face cost and supply challenges.

A drop-in biofuel offers a near-term alternative that can be implemented quickly. By using current vehicles and refuelling systems, operators can reduce emissions without disrupting service or incurring high upfront costs.

This approach is particularly relevant for cities in emerging economies, where financial and infrastructure constraints can slow the adoption of newer technologies.

Challenges Around Scale and Sustainability

Despite its potential, the widespread adoption of advanced biofuels faces several challenges. Feedstock availability is a key concern, particularly in ensuring that production does not compete with food systems or contribute to deforestation. Brazil’s agricultural expansion has been closely scrutinized in this regard, highlighting the importance of robust sustainability standards.

Certification schemes and traceability systems will be essential to demonstrate that the fuel delivers genuine environmental benefits. Without these safeguards, there is a risk that emissions reductions at the tailpipe could be offset by upstream impacts.

Cost is another important factor. Advanced biofuels are generally more expensive to produce than fossil diesel. Their competitiveness will depend on policy support, including incentives such as carbon pricing, subsidies, or mandates that encourage low-carbon fuel adoption.

Implications for Global Markets

The outcome of the Brazilian trial could have broader implications for global transport decarbonization. Many countries face similar barriers in reducing emissions from heavy-duty vehicles, particularly where electrification is not yet feasible at scale.

If the pilot demonstrates strong technical and economic performance, it could serve as a model for other cities and regions. Fuel producers may also increase investment in advanced biofuel technologies, including hydrotreated vegetable oil and other renewable diesel alternatives.

For policymakers, the trial reinforces the value of a diversified approach to decarbonization. While electrification is expected to dominate in the long term, interim solutions such as advanced biofuels can accelerate emissions reductions in the near term.

Next steps and potential expansion

The pilot is expected to run for several months, with data collected throughout the testing period. If results are positive, city officials may expand the use of the biofuel across the entire municipal bus fleet and potentially into other sectors such as logistics and public services.

Such a move would represent a significant step toward reducing urban transport emissions and improving air quality. It would also demonstrate how existing infrastructure can be leveraged to achieve meaningful climate progress in the short term.

As cities worldwide seek practical solutions to meet net-zero targets, Brazil’s experiment highlights the role that advanced biofuels could play in bridging the gap between current systems and future low-carbon technologies.

Source: www.reuters.com


Maílis Carrilho
Written by:
Maílis Carrilho
Sustainability Research Analyst
Maílis Carrilho is a Sustainability Research Analyst (Intern) at Net Zero Compare, contributing research and analysis on climate tech, carbon policies, and sustainable solutions. She supports the team in developing fact-based content and insights to help companies and readers navigate the evolving sustainability landscape.
Our principle

Cut through the green tape

We don't push agendas. At Net Zero Compare, we cut through the hype and fear to deliver the straightforward facts you need for making informed decisions on green products and services. Whether motivated by compliance, customer demands, or a real passion for the environment, you’re welcome here. We provide reliable information. Why you seek it is not our concern.