Brazil increases biofuels, sees self-sufficiency in gasoline
The Brazilian National Energy Policy Council approved an increase in the amount of biofuels blended into fossil fuels on Wednesday. This move was also hailed by renewable energy lobbyists who had earlier claimed that the blends wouldn't be changed this coming year.
Pietro Mendes from the Energy Ministry's Oil and Gas Department announced the changes during a press conference.
Alexandre Silveira, Minister of Mines and Energy at the event, also stated that a change in the mandate for biofuels would allow Brazil to become "gasoline-independent for the first 15 years".
Earlier this summer, the CNPE decided to keep the biodiesel mix at 14%, citing fears that the increase would cause food prices to rise and harm the government's ratings. Industry groups, however, disputed the CNPE's decision.
Brazil's Ministry of Mines and Energy said in March that increasing the percentage of ethanol to 30% is backed up by tests that show "consistent performances" and "real benefits for the environment."
Daniel Amaral is the director of economics, regulatory affairs and soy industry group Abiove.
Brazil produces 70% of its biodiesel from soybeans. Its ethanol, on the other hand, is made from sugarcane or corn.
The International Energy Agency states that biofuels such as ethanol and biodiesel are important in decarbonizing global transport and reducing greenhouse gas emissions linked to burning nonrenewable fuels.
Aprobio, the association of biofuels producers said that this decision was fundamental in order to reduce dependence on petroleum-derived products.
Amance Boutin said, "The timeline is very short but I believe the government is betting the production capacity of corn ethanol," Amance Boutin was a business development manager for consultancy Argus. She spoke on the sidelines Argus' Biofuels and Feedstocks Latin America Conference in Sao Paulo.
Boutin stated that the 3% increase would reduce the gasoline demand by 1,33 million cubic metres. Brazil's external deficit for gasoline in 2024 is 872,000 cubic meter, so the South American nation will be self-sufficient in gasoline with this move.
In a recent statement, Grupo Potencial, a biofuel producer, said that the advancement of biodiesel was strategic for the national energy security. This is especially true in light of the recent geopolitical instabilities, including the conflicts in Ukraine, the Middle East, and elsewhere. (Reporting by Ana Mano in Sao Paulo, Pedro Fonseca in Rio de Janeiro and Ricardo Brito in Brasilia Writing by Oliver Griffin and Ana Mano Editing by Marguerita Choy)
(source: Reuters)
