Area
Brazil
Commodity Group
Biofuels
Commodity
Biodiesel
Date
01/08/2019
Policy Category
Renewable energy
Policy Instrument
Biofuel policy
Description
Raised, effective 1 September 2019, the mandatory national blending rate for biodiesel in transport diesel to 11 percent.
Notes
The Brazilian Government has raised the mandatory national blending requirement for biodiesel. From September 2019, transport diesel must contain 11% of biodiesel, compared to the 10% requirement in place since March 2018 (see MPPU Mar.18). The countrys Mines and Energy Ministry also published the results of engine tests that clear the path for an increase in the blending requirement to 15% (planned for 2023). Addressing concerns raised by car manufacturers, the countrys oil industry regulator ANP also issued a resolution that will require a higher oxidization stability as the biodiesel blends increase so as to avert engine wear. The forthcoming one-percent increase in the blending rate is estimated to lift Brazils biodiesel production from 4.7 million tonnes (in CY 2018) to 5.4 million tonnes (CY 2019), with soyoil accounting for most of the increase in feedstock demand. According to industry sources, the higher biodiesel volumes will require an additional local crush of 200 000 tonnes of soybeans per month.
