Brazil proposes raising biodiesel blend rate to 15% from 5%

01 August 2013 22:16  [Source: ICIS news]

CAMPINAS, Brazil (ICIS)--A Brazilian proposal could increase the nation's biodiesel blend rate to 15% from 5%, a move that a trade group warned could overwhelm the country's logistics if done too quickly, it said on Thursday.

The lower house of the Brazilian congress is analysing the plan.

The logistics are not there among Brazil's network of biodiesel producers, shipping companies, fuel distributors and fuel retailers, according to Ubrabio, the country's biodiesel trade group.

In the past, Brazil has gradually increased its blend rate, allowing the industry to improve its logistics, according to Ubrabio's executive director, Sergio Beltrao.

"We defend a gradual progression [of the blend rate], such as the one we've seen between 2008 and 2010", he said.

Brazil has been increasing its biodiesel blend rates since 2008, when it reached 2%. Later, in July 2008, Brazil increased the mixture to 3%, to 4% in July 2009, and more recently to 5% in 2010, said Beltrao.

At the same time, increasing the blend rate should reduce carbon dioxide emissions and improve Brazil's trade balance, Beltrao said.

By: Leo Siqueira
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