During its first meeting March 17, 2023, the new leadership of the National Council for Energy Policy (CNPE) approved an increase to 12% of the mandatory blend of biodiesel to diesel sold in Brazil, after April this year.
The proposal approved by the CNPE sets the addition of biodiesel in the composition of diesel to grow in April this year from the current level of 10% (B10 mixture) to 12% (B12 mixture). The content will be raised to 13% (B13 mixture) in April 2024, to 14% (B14 mixture) in April 2025 and to 15% (B15 mixture) in April 2026.
The MME estimate is that the national production of biodiesel will go from the current 6.3 billion liters to more than 10 billion liters annually, between 2023 and 2026. In addition, it is planned to reduce the import of 1.3 billion liters of diesel oil in 2023 and 4 billion liters in 2025. The date for each step of the levels defined now may be anticipated based on an assessment by the CNPE of aspects related to the supply and demand of biodiesel, as well as its economic impacts.
Source: Government Press Read The Article
PSR Analysis: This announcement scares OEMs that struggle with the collateral effects of a Biodiesel increase in the mix on engine performance and durability. The industry preference is for HVO, the full scale production of which has been promised by Petrobras for 2022, but it is not an alternative yet today. PSR
Fabio Ferraresi is Director, Business Development South America, for Power Systems Research
