The Vaccaro Group is investing R$ 155 million in a new biodiesel plant in Erechim, expanding the sustainable energy matrix with a capacity of 180 million liters per year.
The renewable energy sector in Rio Grande do Sul has gained a new key player with the Vaccaro Group‘s ambitious project. At its industrial park located in Erechim, the company is building a modern manufacturing unit dedicated to biodiesel production, reinforcing its commitment to the energy transition and rural sustainability.
Backed by a robust financial investment of R$ 155 million, the initiative aims to leverage the strength of the regional agricultural supply chain to boost the biofuel market. The project, which is already in an advanced stage of structural assembly, strategically positions the company in a market heated by the recent increase in the mandatory blending mandate for Brazilian diesel.
Vertical integration and soybean utilization
The new plant is not an isolated venture, but rather a key piece in the vertical integration process of the Vaccaro industrial complex. The company, which already excels in grain crushing, will now use internally produced soybean oil and animal fats as the primary feedstock for manufacturing the biofuel.
This operational integration allows the group to add value across the entire chain, reducing external dependence and optimizing the distribution of its co-products. The business model projects an initial daily output of 300 cubic meters, with the potential to expand to 600 cubic meters per day after the project matures.
Carlos Vaccaro highlighted:
“The decision to invest in biodiesel takes into account the availability of grains in northern Rio Grande do Sul and the growing demand for renewable energy sources, aiming to add value to regional production”
Impact and regulatory framework
The group’s entry into the biofuel segment coincides with a major milestone for the sector: the consolidation of B15. Since August 2025, the Brazilian market has operated with a mandatory blend of 15% biodiesel in fossil diesel, a measure by the National Energy Policy Council that drives domestic demand and justifies the expansion of installed production capacity in the country.
The Erechim unit is expected to be operational by the first half of 2027. Before commercial production begins, the plant will undergo the rigorous certification process of the National Agency of Petroleum, Natural Gas and Biofuels (ANP), which ensures the safety and quality standards of the fuel that will reach vehicle tanks.
In addition to biodiesel, the industrial complex is receiving a new animal feed factory with an investment of R$ 10 million. The group’s long-term strategy is clear: to transform every stage of soybean processing—from meal to oil—into higher-value end products, strengthening its economic position and significantly increasing its revenues in the coming years.