New fuel will impact the price of soybeans

HVO, also called hydrotreated or hydrogenated oil and also hydrobiofuel, uses hydrogen instead of methanol – as is the case with biodiesel – for its catalysis. According to its developers, the new biofuel reduces carbon dioxide emissions from vehicles by 90%.

According to Gustavo Idígoras, president of the Chamber of the Petroleum Industry of the Argentine Republic and the Cereal Exporters Center (Ciara-CEC), HVO is part of “the strong policy of latest generation biofuels launched by the United States, which will replace fossil fuels and is based on renewable soybean oil”.

Speaking to the Argentine portal Télam, the expert points out that the advancement of this new fuel would have a particular impact on exports from the neighboring country. According to him, the threat of a drop in the price of soybean products – one of the main products in Argentina's export basket – is real.

“This energy revolution in the United States is generating billions of dollars in investments”, highlighted Idígoras. In turn, a report by Agritrend director, Gustavo López, highlighted that in eight years the global consumption of biofuels in general grew by 72 %, with biodiesel increasing by 53% against 487% for HVO.

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According to the director of Ciara-CEC, HVO “100% can be used, without the need to cut it, because it is a complete and total replacement for mineral diesel”. This means that once the new technology is fully tested, the United States will be able to replace the use of fossil fuels altogether.

In the hydrocarbon market, says the expert, prices would tend to fall as consumption of the main global demand would fall. On the other hand, HVO could mean a boost for soybean producers, with an increase in production destined for industrialization.

Ivo Sarjanovic, investor and professor of agricultural commodities, is another enthusiast of the new soy-based fuel: “There is a renewable diesel, called HVO, that can almost entirely replace fossil diesel without any cuts,” he said in mid-July this year. year.

According to him, the United States is reconverting refineries to meet the demand for vegetable oils. He estimates that around 20 million tons of soybeans will be needed to meet this new demand.

By: Leonardo Gottems | agrolink