Brazil approves increasing national biodiesel requirement from 10% to 12% in April

Brazil’s National Council for Energy Policy (CNPE) approved a measure March 17 to increase the nation’s biodiesel mandate from 10 percent to 12 percent beginning in April.

The standard provides that the content will be increased to 13 percent in April 2024, 14 percent a year later and 15 percent in 2026.

“This measure that we approved today 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 Alexandre Silveira, the minister of mines and energy and CNPE chairman. “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.”

The government said it is possible the dates on which the increases go into effect may be altered, based on an assessment by CNPE relating to biodiesel supply and demand and economic impacts.

According to Silveira, it is estimated that, with the mandate increases, production of biodiesel in Brazil will go from the current 6.3 billion liters (1.66 billion gallons) per year to more than 10 billion liters (2.64 billion gallons) per year in 2026.

In addition, a 1-billion-liter (264-million-gallon) reduction in diesel imports is expected this year and 4 billion liters (1.06 billion gallons) in 2026.