Argentina government/biofuels talks frozen

22 October 2008 23:49  [Source: ICIS news]

BUENOS AIRES (ICIS news)--Negotiations between Argentina’s biofuels sector and the government on issues such as investment regulations are at a standstill due to a vacant government post, an industry official said on Wednesday.

The position of national fuels sub-secretary position has remained vacant for the last three months since Alejandro Rodriguez left the post on 17 July.

“Therefore, the biofuels industry was left without an official negotiator to discuss key issues”, said Carlos James, president of the Argentine Renewable Energies Chamber.

“There’s a lot to talk about, since Argentina needs new regulations to promote the entrance of new investors that can supply the local market,” said James.

Filling the position is crucial if the country is to comply with a law requiring it to cut diesel fuel and gasoline with 5% biodiesel or ethanol.

“If the situation continues without resolution, Argentina wouldn’t be able to comply with the requirements of the law by January of 2010,” said Argentine Renewable Energies Chamber vice president Jose Martinez Justo.

“In these conditions, biofuel companies can’t plan in the long term, and its also discouraging potential investments,” said Justo.

According to the Argentine Renewable Energies Chamber, by the end of the current year Argentina will produce over 10% of the world’s biodiesel, around 1.2m tonnes/year. This represents a 150% increase from the country’s production in 2007.

By the year 2009, more than 30 biodiesel plants will be working in the country, the chamber said.

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By: Cristina Kroll
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