Brazil will boost biodiesel blending

Brazil is expected to increase biodiesel blending to 12% of diesel consumption (B12) in March 2020, its second increase in less than a year, the agency said. Reuters on November 12th.

Analysts, producers and government officials predict the introduction of B12 in March 2020 after an increase from 10% to 11% in September.

They saw Brazil reaching B15 in 2023 and discussed the path to higher blends after that, wrote the Reuters .

The higher blend would increase local demand for soybeans, as 80% of Brazil's biodiesel was produced from soybean oil, and would also reduce imports of petroleum-based diesel fuel.

“B15 is something we take for granted, we are testing higher blends now,” said Fabio Vinhado, head of the laboratory at ANP, the Brazilian oil and fuels regulator. Tests were being done on B20 and B30, he added.

Consulting BiodieselBR estimates that the demand for biodiesel in Brazil will reach around 9.7 billion liters in 2023.

Biodiesel producers association Ubrabio said there were 11 plants currently working on expansions and 10 new plants under construction. It expected production capacity to increase to 12.6 billion liters once these projects were operational.

“When we reach B15, the local soy industry will have to process 8 million tons more soy, from 44 million tons/year currently to around 54 million tons,” said Andre Nassar, head of Brazilian group Abiove.

Source: OFI Magazine

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