Brazil, our big ethanol friend has decided to repeat its alcoól success with biodiesel. For 2008, the country had plans for a mandatory 2 percent biodiesel blend into all diesel pumps in the country. Nevertheless, although oil production has already increased enough to raise the bar to 5 percent, which had been the plan for 2012, the Brazilian government expects to raise the percentage in time for 2010.
According to Brazil's Government spokesperson, Marcelo Baumbach, and the União Brasileira do Biodiesel (Urabio), the biodiesel sector plans have been accomplished. They're now talking about a mandatory 8 percent blend in a few years' time.
Although ethanol seems to be the fuel of choice for Brazilians, diesel is actually the most-used fuel in the country, with about 650,000 barrels per day. Most of it is imported, so swapping this for locally-produced biodiesel is surely good for the country's economy.
Brazil has developed an official "Social fuel" seal which recognises those companies who buy raw materials for biodiesel to family farms. In exchange, those companies obtain tax breaks and other benefits from the Government. 80 percent of Brazil's biodiesel is produced from soja (soy) oil, 10 percent from animal fat, 5 percent from cottonseed and 5 percent from other sources.
- Good sugarcane harvest means ethanol will continue to be cheap in Brazil
- Biofuels adding to destruction of Brazilian cerrado
- Galp Energia and PetroBras launch biodiesel joint-venture
[Source: Econoticias (link is in Spanish)]