Bio Clean Energy is implementing a pilot project in the city of Motuca-SP, which forms the basis for its regional expansion in the formation of local clusters with small farmers, enabling the company to be accredited with the SOCIAL SEAL, provided by Federal Government through the Ministry of Agrarian Development - MDA.
The Social Fuel Seal is a certification issued by the Ministry of Agrarian Development to biodiesel producers to promote social inclusion and regional development by generating jobs and income for family farmers according to the PRONAF criteria. Through the Social Fuel Seal, the biodiesel producer will have access to differentiated PIS/Pasep and Cofins tax reductions, better access to financing from Banco Nacional de Desenvolvimento Economico e Social - BNDES and its Accredited Financial Institutions, the Banco da Amazonia SA - BASA, the Northeast Bank of Brazil - BNB, Banco do Brazil S / A or other financial institutions that have special financing conditions for projects with the Social Fuel Seal. The producer of biodiesel can also use the seal for purposes of commercial promotion of the company.
The seal shall only be granted for biodiesel producers that:
Beginning in the 2010/11 harvest, buy agricultural raw materials in a minimal percentage of:
- 15% North and Midwest, and
- 30% Southeast, South, Northeast and semi-arid
Negotiated contracts with family farmers, consisting of at least:
- The contractual term;
- The purchase price and criteria for the readjustment of the contract price;
- The conditions for the delivery of raw materials;
- The safeguards of each part and,
- Identification and agreement of those who represented the farmers and participated in the negotiations.
- Ensure technical assistance and training to farmers