Last Friday (17th), the National Energy Policy Council (CNPE) decided to increase the blend of biodiesel in diesel to 12% in the countrya movement celebrated by producers, especially in the soy industry, which accounts for most of the raw material.
The CNPE decided that the blend of biodiesel with fossil diesel will increase from the current 10% to 12% as of next April 1st. In 2024, it will be raised to 13%; in 2025 it will go to 14%; in 2026 it will be raised to 15%. The date for the entry into force of the grades may be brought forward based on an assessment by the CNPE of aspects related to the supply and demand of biodiesel, as well as its economic impacts, informs the Ministry of Mines and Energy.
According to Erasmo Carlos Battistella, president of BSBIOS, the largest biodiesel producer in the country, the decision means a victory for Brazilian society. “The CNPE measure, commanded by the President of the Republic and 16 of his ministers present at the Council, in defense of the National Biofuel Policy (RenovaBio), is symbolic of a greater commitment by the nation to an energy transition to a cleaner matrix”.
For him, the decision recognizes the effort of the biodiesel sector. “With the reinforcement of RenovaBio, we are at the exact moment when we must bring together all social and economic actors, from the field to the engine, from waste that becomes clean energy, from transport to food, around this common challenge of having a sustainable world for the whole society. We took an important step towards building a better future for the next generations.”
In the opinion of Tatiana Cymbalista, a partner at Manesco Advogados, the increase in the minimum percentage of biodiesel incorporated into diesel in national territory stems from a public policy that needs to consider several factors.
“Among the factors favoring the increase is the issue of promoting national industry, sustainability, since biodiesel represents a 70% reduction in greenhouse gas emissions compared to fossil diesel, the strategic autonomy of Brazilian production, the regional development and the reduction of inequalities. On the other hand, the free market, the international situation, the price of fuel at the pump, inflationary pressures and the preservation of fuel quality may recommend more caution in increasing, or even eventually reducing, this percentage. All these points need to be considered by the CNPE”, he analyzes.
According to her, the decision to bet on increasing the percentage of biodiesel, from 10% to 15%, but to space this increase over four years, seems like an interesting balance.
“The increase in the blend to 15% over the next two years is a technical and political decision, based on the high quality of national biodiesel and the installed capacity of our industry, which is already one of the best in the world. The Front is a cross-party political movement, with 220 parliamentarians, and is one of the main articulators of the national biodiesel policy with the government.
In the view of the president of the Mixed Biodiesel Parliamentary Front (FPBio) of the National Congress, federal deputy Alceu Moreira (MDB-RS), the change guarantees the productive inclusion of thousands of families and repositions Brazil as a world producer of clean energy. “The increase in the blend to 15% over the next two years is a technical and political decision, based on the high quality of national biodiesel and the installed capacity of our industry, which is already one of the best in the world.
FPBio is a cross-party political movement, with 220 parliamentarians, and is one of the main articulators of the national biodiesel policy with the government.
Today, the country produces 6.3 billion liters per year, but has the capacity to produce 13.4 billion liters per year. In the short term, this capacity will jump to 17.1 billion liters annually.
Impact of increased mixing on pumps
According to FPBio, raising the blend to 12% as of April should generate an additional increase of R$ 0.02 (0.23%) in the price of a liter of diesel sold at pumps. On the other hand, commercial competition between gas stations could eliminate this impact on consumers.
Source: Moneytimes
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