Government resumes biodiesel mix increase with a new schedule

By Redação AutoIndústria | 3/20/23 | Translated by Jorge Meditsch

The National Energy Policy Council (CNPE) approved last Friday, 3/17, a schedule of successive increments of biodiesel addition to diesel fuel. Next month, the fuel sold in the country will be the B12 and every April in the next years, the percentage will increase by 1% until 2026, when the B15 will be offered.

The mix, which has been 13%, was reduced to 10% in 2021 in a previous government’s attempt to hold the fuel price. But, according to what was determined by the National Biofuels Policy (RenovaBio). Diesel should get 15% of biofuel in March this year.

According to the Mining and Energy minister, Alexandre Silveira, the decision’s impact should increase diesel prices by R$ 0,02 a liter. Each percentual point added represents an additional R$ 0,01.

The decision put productive chain agents in opposed fields. It pleased biodiesel producers that from 6.27 million cubic meters produced last year will surpass 10 million cubic meters by 2026, according to a Mining and Energy Ministry estimate.

The Brazilian Biofuels producers Association said in a note that the return of the RenovaBio signs the commitment to international decarbonization agreements signed by the country.

“Brazil aligns with the world’s most developed countries that pursue a low carbon transition to avoid global warming consequences”, said Francisco Turra, president of Aprobio’s management board.

Nevertheless, representatives of the transportation, machines and industry had manifested against the increment of biofuel in diesel for some time. A note signed by various organizations has harshly criticized the biofuel industry suggesting the producers want “to grant a market reserve against more modern biofuels’, clearly referring to the resistance against HVO, hydrotreated vegetal oil, also known as green diesel.

The note also says the biodiesel currently produced in Brazil generates residues that may harm engines and machines and, besides damaging parts, are highly pollutant and impact transport costs.

On many occasions, Anfavea also manifested worry about the increase of biodiesel mix. Nonetheless, the association will wait for new decisions about the mandatory mix policy before manifesting.

“The increase up to 15% is previewed by law. The ANP (National Petrol, Natural Gas and Biofuels Agency) should publish new technical specifications for biodiesel and diesel fuel aiming to eliminate the problems verified in the field and make the fuel compatible with new vehicular technologies that since January meet the P8 Proconve regulations for trucks and buses.”

Photography: Pixabay