Sao Paulo - Brazilian biodiesel producers are lobbying the government to increase the country's mandatory biodiesel blend rate to as high as 20pc over the next decade, up from the current 5pc (B5) blend.
The industry has garnered support from more than 260 Brazilian congressmen and senators, who back the creation of a new regulatory framework for the biodiesel industry. Congressman Jeronimo Goergen, from the southern state of Rio Grande do Sul, is the leader of the Biodiesel Defense Parliamentary Group, which will seek to reduce taxes on the biodiesel sector.
The group's goal is to make Brazilian biodiesel more competitive on the domestic and international markets. The group holds its inaugural meeting today in Brasilia.
According to the Brazilian Biodiesel Producer's Association (Aprobio), Brazil currently has installed capacity to produce 5.1bn l/yr (32.1mn b/d), but 2010 production was less than half of that at 2.4bn l. To supply the market with B20, Apriobio said Brazil would need to produce 14bn l/yr.
Copyright © 2011 Argus Media Ltd.
