Amid oil market volatility and uncertainty over developments in the Strait of Hormuz, transport companies are finding not only environmental but also economic incentives to accelerate the adoption of alternative solutions, such as biodiesel, biomethane, and electric vehicles.
The main challenge, executives say, lies in the upfront investment required for the transition, even as these alternatives have proven less costly than fossil fuels over time.
“We are not going to replace diesel overnight, but we need to start exploring alternatives,” said Marcos Azevedo, director at Bravo Logística. “The company had already identified this demand from clients, particularly those with decarbonization targets. Another key factor is reducing dependence on fuels tied to geopolitical developments, such as diesel, and moving toward alternative solutions,” he said during the Hannover Messe trade fair in Germany.
The company has been testing biomethanol as a substitute for traditional diesel, although gas-adapted models still account for only 2% of its fleet of around 1,000 vehicles.
Other solutions are also under evaluation, including biodiesel and catalytic additives. “We have tested a range of options, but the solution we currently see as scalable is biomethane,” he said.
Since the start of the conflict in Iran, biomethane has become between 25% and 30% cheaper than diesel, according to Carlos Ferreira, director at Jomed Transportes. The company has been expanding its gas-powered fleet and investing in biomethane refueling stations in Brazil. “This scenario shows that transport companies increasingly need to reduce their dependence on fossil fuels,” he said.
Jomed, which operates a fleet of 500 vehicles, plans to have 70% of its trucks running on gas by 2030, Ferreira said. The company also plans to open two additional refueling stations this year—one in Volta Redonda (Rio de Janeiro) and another in Espírito Santo—bringing its total to three, including its existing facility in São Paulo. All are linked to biomethane supplied from landfills.
Electric vehicles are also proving more cost-effective than diesel. After five years of pilot operations, transport company Braspress recorded 78% cost savings compared with conventional diesel, according to its commercial director, Giuseppe Lumare Júnior.
“Maintenance costs have fallen sharply, so we plan to scale up,” he said.
The company, which operates a fleet of more than 3,000 vehicles, began testing with 30 electric units and plans to acquire another 60 by 2027. These vehicles are primarily used for urban deliveries rather than long-haul operations.
Despite this progress, executives highlight several challenges to scaling these solutions, including the high upfront investment required for new vehicles and the need to develop refueling infrastructure—particularly in a country as large as Brazil.
For electric vehicles, one of the main obstacles is the development of charging infrastructure along highways. Lumare Júnior said a project to electrify the Dutra highway, which connects São Paulo and Rio de Janeiro, is under discussion but remains at an early stage.
Vehicle acquisition is another bottleneck. “Electric trucks are currently 40% to 50% more expensive than diesel models, and delivery times can take up to a year, which is also a challenge,” he said during a panel at the Hannover fair.
In the case of biomethane, the rollout of refueling infrastructure is also a hurdle. However, executives note that trucks can also run on natural gas, which is more widely available, enabling hybrid use on longer routes. The cost of acquiring these vehicles remains an additional challenge.
“We need to create green corridors so that biomethane-powered transport can expand over long distances,” Azevedo said, also calling for stronger public incentives for the model.
One of the main obstacles to biofuels, however, may come from restrictions within the European Union. The issue gained prominence in recent days at the Hannover fair following President Lula’s remarks in support of the sector.
The segment faces resistance in the European market, where regulations have been introduced against fuels derived from sources such as soy and palm.
These restrictions could hinder the expansion of biofuel markets, which depend on large volumes to become price-competitive, said Camilo Adas, director of energy transition and institutional relations at Be8, one of Brazil’s leading biodiesel producers, who also attended the event.
He cited the market for sustainable aviation fuel (SAF) as an example. “European regulations impose specific restrictions on certain feedstocks,” he said, noting that soy-based biofuels are excluded. “Aviation is closely tied to Europe. Producing SAF solely for Brazil is not viable because volumes are too small. In industrial production—especially biofuels—scale is essential, as margins are very thin. Without access to the European market, achieving that scale is not possible.”
In aviation, the conflict has already had tangible effects, including higher ticket prices and reduced flight schedules. In recent days, Germany’s Lufthansa announced the cancellation of 20,000 short-haul routes as part of efforts to reduce jet fuel consumption amid the crisis.
The journalists’ travel was facilitated by an invitation from ApexBrasil.