Advanced BioFuels USA

by Charles Newbery (S&P Global Platts) Requirement was to expire in May; Blends now at 10% in gasoline, 12% in diesel; Improvements planned for blend regime  —  Argentina’s President Alberto Fernandez said his administration is working on a bill to extend a mandatory mix of biodiesel and ethanol in diesel and gasoline, bringing relief to the sector.

The law for the mix is due to expire in May, but it will be renewed, Fernandez said late Feb 9 in a televised press conference in the northern province of Tucuman, a huge source of sugarcane for making ethanol.

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Argentina produces all of its own biodiesel — mostly from soybeans — for a 10% mix in diesel and all of its own ethanol from corn and sugarcane to meet a 12% blend requirement in diesel.

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He added that he wants farmers and biofuel producers to increase output. READ MORE

Argentina’s ruling party proposes reducing ethanol, biodiesel blends (S&P Global Platts)

Cañeros warn that 200 thousand jobs would be lost if the Biofuels Law is not addressed — From the Union Cañeros Independientes de Jujuy and Salta they demanded the extension of the current regulation with the current cut-off levels. (Perfil (Google translation))

With the aim of promoting another initiative, the Government extends the current biofuel law for 60 days (Tucuman Noticias (Google translation))

Excerpt from S&P Global: Biodiesel to be cut in half to 5%; Ethanol to be trimmed to 10% from 12%; Proposal comes as oil output recovers and attention shifts to EVs — Argentina’s ruling political party has submitted a bill to Congress to reduce the obligatory mixes of biofuels in diesel and gasoline on the expectation of a rise in oil supplies for refiners and also to promote the use of electricity, hydrogen and natural gas to run cars as part of the transition to cleaner energy.

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On Feb. 9, Argentinian President Alberto Fernandez said he planned to seek a renewal of the biodiesel and ethanol blends, saying that he wanted to preserve the investments made in the sector. Argentina produces all of its biodiesel — mostly from soybeans — and ethanol from corn and sugarcane for the blends.

But on March 22, Energy Secretary Dario Martinez suggested that there’s leeway to lessen the mix requirements because times have changed since the current law was sanctioned in 2006.

In an address before the lower house’s energy commission, he said that back then Argentina’s oil and gas reserves were maturing, leading to a steady decline in output and a rise in imports.

The 2006 law had encouraged companies to invest in biofuels, reducing crude demand at local refineries and also spurring the export of excess biodiesel, he said.

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Now with the development of Vaca Muerta, a huge shale play in northern Patagonia, Argentina has the potential to not only supply all of its own oil and gas, but to export the surplus. 

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On March 1, President Fernandez said he would submit a bill to Congress this year to provide incentives for the use and production of electric vehicles, helping to capitalize on the country’s large lithium resources.     READ MORE