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Brazilian producers demand an increase in share of vegetable oil in biofuels

BRAZIL : The Brazilian Association of Biofuel Producers Aprobio has asked the Brazilian government to return to the initial schedule for increasing the share of vegetable oil in biofuels, which was interrupted due to the COVID-19 pandemic and the conflict in Ukraine, Soybeans & Corn Advisor reports.

As noted, according to the plan approved by the CNPE (National Council for Political Emergency) in 2018, the share of brazilian biofuels in motor fuel was planned to increase to 14% (B14) in January 2023, and then to 15% (B15) in March. 2023

For now, this indicator is set at 10% (B10), but it was originally planned that it should now be 13% (B13). But as soybean and soybean oil prices reached near-record levels, the Brazilian government decided to keep the 10% mark to keep the price of diesel fuel down.

When the decision was made to keep the blend percentage at 10% throughout 2022, soybean processors began to complain to the government as they expanded their production capacity in anticipation of a higher proportion of biofuels in diesel.

It is also noted that Aprobio estimates that 19.8 million tons of vegetable oil will be used for biodiesel production in Brazil in 2022, and in 2023 this volume can increase to 30 million tons if the transition plan to the B15 mandate is implemented. .