Brazil Raises Biofuel Blending Mandate to 30%

Brazil’s National Energy Policy Council (CNPE) has approved an increase in the level of biofuels blended with fossil fuels, a move that marks another step toward energy self-sufficiency, BioFuels reported, citing a statement from Brazil’s Energy Ministry.

As of August 1, the share of ethanol blended with gasoline will increase from 27% to 30%, while the amount of biodiesel in diesel fuel will increase from 14% to 15%, said Pietro Mendes, secretary of oil and gas at the Energy Ministry.

Ministry of Mines and Energy Alexandre Silveira also said the change in the biofuel mandate would make Brazil “self-sufficient in gasoline for the first time in 15 years.”

Earlier this year, CNPE decided to keep the biodiesel blend at 14% amid concerns that the proposed increase could lead to higher food prices and hurt the government’s approval ratings, which industry groups disputed.

Soybean production, the main feedstock for biodiesel, is expected to rise to 176 million tons in Brazil this season, according to the U.S. Department of Agriculture’s Foreign Agricultural Service, following an expansion in acreage.

Tags: fuel, Brazil