Brazil may not introduce 16% biodiesel mix into diesel on deadline, official says

An official of the Brazilian Ministry of Mines and Energy stated on Monday that Brazil may not have the ability to increase the mandatory biodiesel blend in diesel from 15% to 16% by the March 2026 deadline set by the government.

Marlon Arraes said, during an event for industry in Sao Paulo, that the government may not have enough time to complete the necessary studies to implement this measure.

It's possible we won't meet the deadline of March. "It's very challenging," Arraes stated, adding that the government still has to complete a report in order to implement the next phase of the policy.

Brazilian law requires a gradual increase of biodiesel by one percentage point each year. This could reach 20% in 2030. The official refused to provide a timeline on the introduction of 16% mix.

This would have a major impact on the soybean oil industry as it is used in the production of more than 75% biodiesel in Brazil.

The government of the country cited inflation concerns as a reason for implementing the 15% mix in August.

The official said that the law requires any increase in blend to be subjected to ongoing feasibility studies. Reporting by Roberto Samora, Sao Paulo. Writing by Andre Romani, Fernando Cardoso. Editing by Nia William and Lincoln Feast.

(source: Reuters)