Brazilian government should increase biodiesel blend to 12% in 2023, sources say



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The National Energy Policy Council (CNPE) is expected to increase the blend of biodiesel in diesel this Friday, possibly to 12% from April onwards, according to two sources with knowledge of the matter.

The decision responds to requests from producers, after the level of biofuel in fossil fuel remained at 10% throughout 2022.

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The CNPE, a body formed by several ministers to advise the President of the Republic, is holding a meeting this Friday, with the participation of President Luiz Inácio Lula da Silva. The expectation is that the decision will emerge from the meeting.

At the end of 2021, the previous government had decided to reduce the mixture to 10% – it reached 13% earlier that year –, citing issues to protect the interests of consumers, regarding the price, quality and supply of products.

Biodiesel was compulsory introduced into the Brazilian fuel matrix in 2008. Since then, the mixture in road diesel oil has gradually increased from 2% (B2) to 13% (B13), in 2021.

The increase in blending should mainly benefit the soybean industry, since around 65% of total biodiesel was produced with soybean oil in 2022.

On the other hand, there should be dissatisfaction from sectors linked to road transport, vehicle manufacturers and the fuel sector, which have criticized biodiesel, citing problems for engines with a higher mixture.

According to the sources, who spoke on condition of anonymity, the CNPE should also decide on a gradual increase in the mixture in the coming years, with the level rising to 13% in 2024, 14% in 2025 and 15% in 2026.

The gradual increase in the mixture would be a middle ground between what had been previously established, when the CNPE defined a mixture of up to 15% in 2023.

Source: Lisandra Paraguassu | Notícias Agrícolas

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