InterviewBrazil may boost biodiesel blending rates to 10% by 2020

30 April 2012 16:38  [Source: ICIS news]

By Hellen Berger

SAO PAULO (ICIS)--Brazil’s Biofuels chamber is providing the nation's ministers a report which recommends increasing the biodiesel blending rate from 5% to 10% by 2020, the president of the country’s biofuels chamber said on Monday.

The chamber, linked to the country’s Agriculture Ministry, is handing the study for the government’s review. The federal government would then send a bill to Congress for voting.

Brazil would benefit from the higher blending rate because it would help the environment and reduce the harmful effects of burning fossil fuels, especially in the nation's largest cities, said Odacir Klein, president of the chamber.

“There are no doubts about the [positive] effects [of biofuels] for the environment as biofuels do not produce certain pollutants while they reduce the emission of others,” Klein said.  

According to Klein, consumers will pay a slightly higher price for the benefits.

“The [extra] price paid by customers will be small compared to the benefits to human health, environment, agriculture, regional development and employment,” he added.

According to Klein, Brazil is prepared for the change. Current production capacity is approximately 7bn litres/year of biodiesel.

“Only about 2.6bn litres/year are commercialised [37% of the capacity] at auctions intended to meet the 5% admixture. Those figures show that there is a large idled capacity,” Klein said.

“If we insist on not altering the admixture percentage, we will be freezing new developments related to the project and all of the benefits brought by the programme,” he added.

By: Hellen Berger
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