Released December 21, 2023 | SUGAR LAND
en
Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--The Brazilian National Energy Policy Council (CNPE) increased the mandatory biodiesel blend on Tuesday from 12% to 14%, starting in March 2024. The decision was initially expected to take place in 2025. The current government is seeking to boost the renewable and biofuels industry.
For years, Brazil has been increasing the mandatory blends of biofuels in its diesel and gasoline to reduce emissions, create cleaner fuels and increase the demand for grains from which the biofuels are produced.
The Brazilian government also is expected to increase the blend to 15% by March 2025, which previously was expected to take place in 2026.
With these announcements, Brazil expects diesel imports to drop by 15.1 million barrels next year.
"Today, we have expanded the share of biodiesel even further in our matrix. And this has three effects: first, it reduces our dependence on imports of diesel. Secondly, it helps to decarbonize, since the ANP (National Agency for Petroleum, Natural Gas and Biofuels) has been making great progress in certifying the quality of biofuels. And third, and very important, is for us to stimulate our national agriculture," said Alexandre Silveira, minister of mines and energy.
Also, the government has imposed a temporary suspension of biodiesel imports in order to stimulate the local market.
"We also decided to create a working group to study the impacts of imports approved by the ANP. Until the group completes the studies, we will be left with imports in the status quo, as they are today. And Brazil continues to defend local content and national biodiesel," said Silveira.
Local newspapers have quoted the Brazilian Association of Industrial Vegetables Oil (Abiove), which suggests that the increase in the mandatory blend will lead to a biodiesel demand growth of 22% to 56 million barrels next year. By 2025, the ministry projects an increase in demand for biodiesel's raw materials, especially soybeans, of 6 million tons due to the introduction of a 15% mandatory blend.
From January through October, Brazil produced 38.7 million barrels of biodiesel, compared to 39.3 million throughout 2022. About 69% of the biodiesel volumes were produced from soybeans, according to Abiove.
The CNPE also will study the possibility of increasing the blend of ethanol in gasoline from the current 27.5% to 30%.
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 validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
For years, Brazil has been increasing the mandatory blends of biofuels in its diesel and gasoline to reduce emissions, create cleaner fuels and increase the demand for grains from which the biofuels are produced.
The Brazilian government also is expected to increase the blend to 15% by March 2025, which previously was expected to take place in 2026.
With these announcements, Brazil expects diesel imports to drop by 15.1 million barrels next year.
"Today, we have expanded the share of biodiesel even further in our matrix. And this has three effects: first, it reduces our dependence on imports of diesel. Secondly, it helps to decarbonize, since the ANP (National Agency for Petroleum, Natural Gas and Biofuels) has been making great progress in certifying the quality of biofuels. And third, and very important, is for us to stimulate our national agriculture," said Alexandre Silveira, minister of mines and energy.
Also, the government has imposed a temporary suspension of biodiesel imports in order to stimulate the local market.
"We also decided to create a working group to study the impacts of imports approved by the ANP. Until the group completes the studies, we will be left with imports in the status quo, as they are today. And Brazil continues to defend local content and national biodiesel," said Silveira.
Local newspapers have quoted the Brazilian Association of Industrial Vegetables Oil (Abiove), which suggests that the increase in the mandatory blend will lead to a biodiesel demand growth of 22% to 56 million barrels next year. By 2025, the ministry projects an increase in demand for biodiesel's raw materials, especially soybeans, of 6 million tons due to the introduction of a 15% mandatory blend.
From January through October, Brazil produced 38.7 million barrels of biodiesel, compared to 39.3 million throughout 2022. About 69% of the biodiesel volumes were produced from soybeans, according to Abiove.
The CNPE also will study the possibility of increasing the blend of ethanol in gasoline from the current 27.5% to 30%.
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 validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
