Paraguay Emerges as a Strategic Hub for Sustainable Biofuel Investments in Partnership with Brazil

Paraguay is positioning itself as a future hub for sustainable energy production through new collaborative efforts with Brazil. In a recent high-level meeting held at the headquarters of the Unión Industrial Paraguaya (UIP), business leaders and Brazilian representatives explored opportunities to boost biofuel investments in Paraguayan territory.

The meeting brought together UIP President Enrique Duarte, members of Brazil’s Matriz Capital, and Senator Lauro Antonio Teixeira from the state of Sergipe. Discussions centered on green energy, carbon credit projects, and innovative agricultural technologies—particularly a new sugarcane variety capable of tripling productivity, opening new opportunities for both farmers and energy producers.

One key focus is the potential development of SAF (Sustainable Aviation Fuel), with Paraguay aiming to become a regional leader in the biofuels market. With current legislation already requiring a 30% mix of bio-based fuels, the groundwork is set for greater renewable integration.

Matriz Capital, a São Paulo-based investment firm, expressed keen interest in supporting Paraguayan industries through medium-sized enterprise investments in agro, tech, and infrastructure sectors.

This initiative builds on the momentum started by UK-based Atome Energy, which is investing over USD 365 million in hydrogen and fertilizer production plants in Paraguay.

As sustainable energy gains global traction, Paraguay’s natural advantages and investor-friendly climate make it a compelling destination for biofuel development and clean energy innovation. Source: InfoNegocios