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First Biodiesel Production Plant in Brazil Encourages Private Investment in the Sector

Written by Bruno Teles
Published on 27/03/2023 at 18:14
produção de Biodiesel
produção de Biodiesel (foto/divulgação)
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The Private Sector Has Been Heavily Investing in Biodiesel Production in Brazil, Based on the Guarantees of the National Biodiesel Production and Use Plan (PNPB) and the Regulatory Framework for Biodiesel Launched by the Government in 2004.

The advancements in biodiesel over the past 18 years have been significant for Brazil. The National Agency of Petroleum, Natural Gas and Biofuels (ANP) authorized 59 biodiesel production units. The production capacity of these plants reached 38,455 m3/day. “The production of this biofuel is expected to exceed 7.5 billion liters by 2023,” enthuses Alexandre Silveira, Minister of Mines and Energy.

The National Energy Policy Council (CNPE) decided on March 17 to increase the mandatory blend of biodiesel and diesel to 12% (B12 blend) starting in April. The collegial decision extends until 2026, anticipating an increase in the blend proportion to 13% in April 2024 (B13) and 14% in April 2025 (B14) until April 2026, when the proportion is expected to reach 15% (B15). The Council may review the decision at any time.

Family Agriculture Contributed to Biodiesel

In addition to contributing to the energy security of the country, biodiesel has expanded benefits, accumulating significant contributions in social fields such as family agriculture. The Social Biofuels Seal is an essential tool in the National Production and Use Plan for Biodiesel, ensuring the participation of family farmers in the biodiesel production chain.

In the context of the CNPE, considering the need to diversify the origin and raw materials to strengthen the seal, the Council also determined in its last meeting that the minimum increase in the participation of family agriculture in the North, Northeast, and Semi-Arid regions is 10% in 2024, 15% in 2025, and 20% in 2026.

The Ministry of Mines and Energy (MME) celebrated the arrival of the Brazilian biodiesel industry, which has been in the country for 18 years, representing an important advance in the energy transition to a low-carbon economy and generating jobs, income, and opportunities for Brazil.

Biodiesel Will Be Blended with Diesel at 12% by April

The National Energy Policy Council (CNPE) approved a resolution to require a 12% blend of biodiesel in fossil diesel starting in April, gradually increasing to 15% by 2026. The percentage stands at 10%. The decision was made in a CNPE meeting on Friday (17), with the president in attendance.

Consumers are expected to see an increase of 2 cents in diesel prices at the pump due to this measure. The blends of biodiesel with diesel and ethanol with gasoline aim to reduce the emission of harmful pollutants to the environment and human health. In March 2021, the CNPE authorized the National Agency of Petroleum, Natural Gas and Biofuels (ANP) to increase the blend to 13%, but the government of Jair Bolsonaro revised the measure in an attempt to curb rising fuel prices.

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Bruno Teles

Falo sobre tecnologia, inovação, petróleo e gás. Atualizo diariamente sobre oportunidades no mercado brasileiro. Com mais de 7.000 artigos publicados nos sites CPG, Naval Porto Estaleiro, Mineração Brasil e Obras Construção Civil. Sugestão de pauta? Manda no brunotelesredator@gmail.com

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