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Brazil approves biodiesel blend increase

9 Nov 2017, 7.56 pm GMT

Brazil approves biodiesel blend increase

Sao Paulo, 9 November (Argus) — Brazil's national energy policy council (CNPE) approved an increase in the country's mandatory biodiesel blend to 10pc from 8pc, starting on 1 March.

Brazil's biodiesel producers' association Ubrabio is estimating that with the blend hike, biodiesel demand will reach 5.4bn liters (93,054 b/d) in 2018, up from an estimated 4.3bn l in 2017. Brazil currently has production capacity to produce 7.9bn l/yr of biodiesel.

The blend increase will not only help the industry to recover, but also contribute to reductions in greenhouse gas emissions, Ubrabio said.

The CNPE did not approve an intermediary blend increase to 9pc, which the biodiesel industry had lobbied for.

As a result of the blend hike, soybean processing in Brazil is expected to increase by 1.5mn tons to 43mn t in 2018, according to Brazil's oilseed producers' association Abiove.

Abiove said it will continue to defend a schedule for future blend increases with the goal of reaching a 15pc mandate.

In September, 70pc of the biodiesel produced in Brazil used soybean oil as feedstock. Roughly 14pc used beef tallow and the remainder used other vegetable oils and animal fats, according to the oil regulator ANP.

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