Brazil Poised to Boost Biodiesel Blend Rate in Diesel to 10% Over 3 Years

Source: By Brad Addington, OPIS • Posted: Sunday, March 6, 2016

Brazil is poised to boost the biodiesel blend rate in its diesel fuel from 7% to 10% over the next three years as a result of legislative action taken Thursday in the federal Chamber of Deputies.

The measure known as Bill 3834/15 had already been passed by the Senate, and today it was approved by the Chamber of Deputies. Brazilian President Dilma Rousseff now has 15 business days to consider the measure.

The measure calls for a move to an 8% blend rate within 12 months of the measure becoming law, with a move to B9 within another 12 months after that and a move to B10 within another 12 months after that.

The measure also calls for engine tests involving B10 and B15 within 12 and 36 months, respectively, of the measure becoming law. The tests would be carried out by the National Energy Policy Council (CNPE), which would be authorized to boost the biodiesel blend rate to 15% in the future.

ABIOVE, which represents both soybean processors and biodiesel producers in Brazil, on Thursday lauded the Chamber of Deputies’ passage of Bill 3834/15.
ABIOVE has consistently touted the advantages of biodiesel with respect to air quality and Brazil’s energy security in that the biofuel reduces dependence on imports of petroleum-based diesel.

ABIOVE noted in February that while Brazil’s biodiesel production totaled 3.94 billion liters in 2015, figures from Brazil’s National Oil, Gas and Biofuels Agency (ANP) indicate that Brazil’s biodiesel industry has the installed capacity to produce 7.3 billion liters a year. “This means that Brazil could increase, immediately, the biodiesel blend rate to at least B12 (12%),” ABIOVE said.

It was on Nov. 1, 2014, that the minimum biodiesel blend rate in Brazil’s diesel fuel rose from 6% to 7%.