75th Biodiesel Auction by ANP Reached 6 Billion Reais

It Is Emphasized That The 75th Auction Aims To Ensure The Supply Of Biodiesel In The Domestic Market From September 1st To October 31st, 2020

The 75th complementary auction had been announced by ANP on the last day of August 21, just minutes before distributors exhausted – for the second time – all the biodiesel available in Stage 3. The L75 auction took place after much controversy and a legal dispute between the government, ANP, and biodiesel producers. 300 Job Openings With The Resumption Next Month Of The Biodiesel Plant In Mato Grosso Do Sul

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Although the market had come close on several occasions, L75 was the first biodiesel auction in which distributors acquired 100% of the offers made by the plants. A little over 1,189 thousand m³ of biodiesel were negotiated for a total of R$ 6 billion.

Nothing indicates that the market is out of supply. Not even close. The biodiesel that has already been purchased is enough for distributors to sell up to 11.9 billion liters, which would make this the best two-month period in the history of the diesel market in Brazil – surpassing by a wide margin the 11 billion liters sold in the fifth two-month period of 2014.

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Despite this, the way the dispute unfolded in the regular rounds, with distributors repurchasing from each other, may have left more than one company without the necessary biodiesel.

The National Agency of Petroleum, Natural Gas and Biofuels (ANP) published the rules that will apply to the complementary round of Auction 75. Additional volumes of biodiesel must be negotiated to reinforce the supply of the biofuel in the market from September 21 to October 31. In total, there will be 41 days of deliveries.

The initial expectation was that L75C deliveries would be only for the month of October. Check the L75C notice by clicking here. Meanwhile, the schedule of the process can be accessed by clicking here.