Argentina's Senate OKs Bill to Boost Biofuel in Gasoline, Diesel

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Written by Amir Richani for IIR News Intelligence (Sugar Land, Texas)

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Summary

Argentina could deregulate its biofuel market and raise the mandatory blend of bioethanol and biodiesel in conventional fuels to promote more competition among market participants.

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Incentivizing Biofuels Production

Argentina's Senate recently approved a bill establishing a biofuel regulatory framework that seeks to increase biofuel content in diesel and gasoline, boost competition in the sector, and help the industry develop.

The new bill aims to incentivize biofuels production, pure or blended, for Argentina's domestic market and exports. It also seeks to diversify the nation's energy matrix and promote cleaner fuels.

As part of that, the new framework contemplates increasing the biodiesel blend in diesel from 7.5% to 10%. The change would take full effect 12 months after the law is passed.

For gasoline, the bioethanol blend is set to increase from 12% to 15%. Argentina's regulation requires a 6% allocation from sugarcane bioethanol and 6% from corn, while the additional 3% can be sourced from any eligible feedstock.

The new framework also seeks to deregulate the biofuel market and promote competition through public auctions conducted on an electronic platform managed by an independent entity. Biofuel prices traded on this market will be determined through competitive bidding, using import-parity prices as a benchmark.

To prevent market concentration, the law caps any single producer at a maximum of 20% of the annual bioethanol volume supplied for the mandatory blend.

Industrial Info Resources is tracking 27 operational biofuel plants across Argentina. Industrial Info Resources offers more information on these facilities in its Global Market Intelligence (GMI) Alternative Fuels Plant Database, where readers can consult a detailed list of plant profiles.

Appealing to Global Investors

The legislation also proposes opening the mandatory domestic biodiesel market to integrated producers, who currently face restrictions on participating in mandatory blending. To that end, the new bill maintains a reserved quota of local demand for non-integrated producers, while gradually expanding open-market competition between integrated and non-integrated suppliers through 2036.

The bill will now move to the Chamber of Deputies to be discussed and voted on before it can become law.

According to Argentina's National Institute of Statistics and Census (INDEC), the nation produced 972 million liters of biodiesel in 2025 (a 16.4% year-over-year drop), while combined output of bioethanol from sugarcane and corn reached almost 1.3 billion liters.

If passed by Congress, the new bill could encourage further investment in Argentina's biofuel sector. According to Industrial Info Resources data, 76 biofuel-related projects in the South American country represent US$4.91 billion of investment. Readers can learn more from a detailed list of project reports.

Key Takeaways

• A new bill could increase the mandatory bioethanol blend in gasoline from 12% to 15%.
• The mandatory biodiesel blend in diesel would also increase from 7.5% to 10%.
• The proposal seeks to deregulate the biofuel sector and promote more competition.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news, and analysis on the industrial process, manufacturing, and energy-related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified, and verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).