Increased biodiesel blend can sustain production

Given the drop in consumption due to measures to combat coronavirus, the soybean industry, which accounts for most of the raw material used in biodiesel production in Brazil, suggests that the next biodiesel auction held by the National Agency of Petroleum, Natural Gas and Biofuels (ANP) be done with a mixture of 14% of biofuel in diesel (currently 12% is used). For A

biove (Brazilian Association of Vegetable Oil Industries), the increase in the biodiesel mixture in diesel in Brazil may allow the sector to maintain production at current levels, even with the drop in demand. 

"We are looking at a reduction in the demand for diesel at the pump and consequently the demand for biodiesel drops as well. In a framework where Brazil continues to import a lot of diesel… It is a framework that allows the anticipation of the mandatory mix," said Daniel Amaral, Chief Economist of Abiove. 

According to the association, the proposal could also lead to the reduction of fossil fuel imports by Brazil, in addition to allowing a reduction in greenhouse gas emissions and the release of particulate materials, carbon monoxide and hydrocarbons into the atmosphere.

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