Brazil to Increase Biodiesel Blend Mandate

The new government of Brazil has indicated that it plans to ramp up the country’s biodiesel schedule, signaling a return to original proposals, in a move likely to lead to higher blend requirements, the Oils & Fats International reported citing AgriCensus. The biodiesel sector is a major outlet for soybean oil, accounting for about 70% of the feedstock used to produce biodiesel in Brazil, the report said. 

According to sources in the new government’s transition team, the goal was to increase the mandate to 14% (B14) from January-February next year and to 15% (B15) from March onwards.  The timetable follows the original schedule set out in 2018 by the National Energy Policy Council (CNPE) and would reverse a decision made by the former president Jai Bosonaro. 

 It was recalled that the biodiesel mandate was reduced from 14% to 10% in May 2021 and has remained at that level up to the present.  However, there were market concerns aired regarding the feasibility of increasing the mandate to B14 in January.  Another view was that B15 from March onwards can be enforced without major issues, especially if there will be a good 2022/23 soybean crop. Meanwhile, the Brazilian Union of Biodiesel awaits final decision soon.