The President of Argentina, Néstor Kirschner, signed a bill (yet to be passed by the Senate) to promote sugarcane ethanol
. This helps the recently passed Biofuels Bill, which establishes a mandatory five percent ethanol blend in all gasolines. Currently, Argentinians can already buy a blend of gasoline and ethanol called alconafta
(E12) but by 2010, all gasolines will have to include at least 5 percent of ethanol.
The new bill is aimed to stimulate the rural economy of the northern provinces of the country, specially Tucumán, and it includes measures to reopen closed facilities that once produced sugar.
Expectations are that the measures will generate $200 million US in revenue because the country is going to need about 300,000 cubic meters of ethanol (about 79 million gallons) for the mandatory E5.