The Minister of Mines and Energy, Bento Albuquerque, cited challenges such as the supply of raw materials. More than 70% of biodiesel in Brazil is produced from soybean oil.
Not enough supply of biodiesel to meet the mandatory blend of 12% in diesel in the coming months, Brazil will reduce the blended percentage to 10% in September and October, the delivery period of the 75th Biodiesel Auction, informed the Minister of Mines and Energy, Bento Albuquerque, on this day (13/08).
The decision affects the soy industry's planning, which had made repurchases of grains that would be exported to meet obligations, said the Abiove association.
“The Brazilian Association of Vegetable Oil Industries (Abiove) regrets the decision of the Ministry of Mines and Energy (MME) and the National Agency of Petroleum, Natural Gas and Biofuels (ANP) to reduce the mixture…”, Abiove said in a note
When questioned, he cited challenges such as the supply of raw materials. More than 70% of biodiesel in Brazil is produced from soybean oil.
See other news about the biodiesel market in Brazil
- Petrobras announced the sale of biodiesel plants
- 3,6 million liters of biodiesel are exported to Europe
- BS started today (08) the construction of its new biodiesel plant in SC; 400 jobs will be created
- Millionaire investment in Bahia: New Biodiesel plant authorized by the state government will generate more than a thousand jobs
Despite having had a record harvest, the country is exporting large volumes of soybeans, especially to China, with a favorable exchange rate.
“In August, during the L75 auction, we saw an imbalance in the supply of biofuels compared to the forecast demand for the next two months. Thus, we came to the conclusion that there will not be enough biodiesel volumes to meet the mandatory blending percentage of 12% for the months of September and October,” he said.
“Therefore, again, we see the need to promote the reduction of the mixture to 10%, during the aforementioned period, and this does not characterize a decrease in the relevance that the federal government attributes to this successful policy ...”, concluded the minister.
No further information was given on how the steps already taken in the biodiesel auction will look like.
