Institute says that an increase in the mixture of biodiesel to diesel must be accompanied by the qualification of the fuel
The IBP (Brazilian Institute of Oil and Gas) released a note, on Saturday (18.Mar.2023), on raising the blend of biodiesel in diesel to 12%. For the institution, the proposal brings predictability to the sector, but must be accompanied by other measures that ensure a quality product for consumers. Here’s the full of the document (49 KB).
According to the IBP, the most urgent proposal is the revision of the specifications of the ANP (National Agency of Petroleum, Natural Gas and Biofuels) on biodiesel. This is because an increase in the composition of the mixture with specifications adjusted to a lower content can result in problems such as engine malfunctions.
“Although the Institute considers that the decision confers predictability so that the entire chain is prepared to deliver the product and schedule its investments, it notes that the measure must be accompanied by an urgent revision of the current biodiesel specifications, compatible with the new levels, accompanying the technological evolution of engines the government targets for reducing emissions”says the note.
Another proposal made by the agency is opening up the importation of biodiesel to ensure demand and increase the competitiveness of the sector, in addition to regulation of new and more modern technological routes for the production of biofuels.
On Friday (March 17), the CNPE (National Council for Energy Policy) approved a resolution that increased the blend of biodiesel with diesel sold in Brazil from 10% to 12%, starting in April.
The proposal approved by the collegiate also provides for the content to increase by 1% each year and reach 15% in April 2026.
“This measure that we approved offers security and predictability to the sector, encourages the generation of jobs and investments in the area of biofuels and contributes to the reduction of imports”said the Minister of Mines and Energy, Alexandre Silveira.
“The decision rescues the National Program for the Production and Use of Biodiesel and reinforces the national energy transition strategy, under the leadership of President Lula, and contributes to consolidating Brazil as one of the largest producers of biofuels in the world”concluded the minister.
Before the CNPE’s decision, the market was witnessing an arm wrestling match between fuel producers and consumers in the face of the government’s lack of definition.
At the end of February, the CNT (Confederação Nacional do Transporte) was against increasing the biodiesel content. In notethe group stated that the proposal “It harms the environment, since it reduces the energy efficiency of engines, increasing consumption.”
In addition, the increase in biodiesel content can impact freight costs, by increasing vehicle maintenance costs, translating into inflationary increases.
already the Ubrabio (Brazilian Union of Biodiesel and Biokerosene) defended the increase as part of a national energy transition strategy. The association classified the measure as “a world example, which generates economic, environmental and social benefits.”
To the Power360Ana Mandelli, IBP’s fuel distribution manager, echoed the urgency of a review of biodiesel specifications by the ANP.
“We need new quality specifications, because the product gain that is true is lost in maintenance costs and waste production”said Mandelli.
The manager said that the specifications we have today are the same as when the content was 6%. “A quality specification needs to follow the percentage of biodiesel that is put in the diesel”.
Questioned whether the measure will increase fuel prices, Mandelli said that the initial increase will not be so large and the definition of an energy plan will bring tranquility to the sector.
“Today the increase is not so expressive, the government understood that this increase is part of a process of decarbonization and reduction of emissions”he said.
“Having taken a decision was good for reorganizing the chain. The vagueness was the worst thing for everyone.”concluded Mandelli.
This report was produced by the intern in Journalism Gabriella Soares under the supervision of the editor Gabriella Soares.
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