Brazil weighs fast-tracking biodiesel tests as diesel prices spike

The head of the Brazilian soy crushers' association stated on Wednesday that the government was looking for ways to speed up testing of higher biodiesel blended diesels, with the goal of reaching a conclusion this year. This is due to a rise in fuel prices caused by the Iran -war. The measure could increase soybean demand in Brazil, the world's biggest producer of oilseed. Most of it is exported to China as animal feed. Brazil's biofuels sector has taken advantage of the disruptions in oil and gas supply in the Middle East to push for higher mandated blended?of soy based diesel and gasoline.

Andre Nassar is the head of the industry group Abiove. He told the Mines and Energy Ministry that they would decide in the next week whether or not to hire additional laboratories to assess the technical performance of blends up to 20% biodiesel compared to the current mandate of 15%.

Testing could be reduced to 4 months

He said that if only one lab handled the?tests, it could take up to 14 months. But if two additional labs were involved, then he estimated, it could be completed in just four months. He said that the private sector had offered to split the costs in order to speed up the process.

An official, speaking on condition of anonymity said that a decision would be expected at the meeting on Friday. The government will not relax requirements, but could allow for faster testing by adding additional labs.

AliancaBiodiesel is backing the proposal, a new partnership formed by Abiove, and biofuel group Aprobio. It will be launched later today in Brasilia.

Nassar said that the goal was to obtain a?approval of blends up 20% in a single step, even though implementation would be?gradual. This way, there wouldn't be a need for time-consuming testing at every new increment. Latin America's biggest economy imports a quarter the diesel that it consumes. Nassar stated that because Brazilian biodiesel has become cheaper than diesel, higher blended fuels would 'enhance the energy security.

He said that Brazil has an abundance of feedstock, which guarantees energy security. This 'war' could drag on... We need to finish the tests in a much shorter time frame. The alliance advocates parallel equipment tests to allow approvals by 2026, and for more freedom to consumers to use biodiesel in any blend. (Reporting and editing by Brad Haynes and Rod Nickel.)

(source: Reuters)