Brazil Biodiesel Producers Ready to Boost Output Amid Diesel Shortage Fears
(BNamericas) Brazil’s biodiesel producers are ready to increase output to prevent a major diesel supply shortage, João Henrique Hummel, who represents the sector’s interests in the lower house, told BNamericas.
In September last year, the government decided to reduce the mandatory mix of biodiesel in diesel because of the high price of soy, the main raw material for the production of biofuel in the country.
According to Hummel, who is executive director at local consultancy Action, the sector is able to immediately meet national demand for the B12 mix and is getting ready for B15 as of March 2023, which is the original schedule for the biodiesel blending mandate.
“It’s a market that can be competitive and today we have almost 50% of our production capacity completely idle,” he said. “We’re putting the sector at the disposal of the government to solve the supply of diesel in Brazil, without any exchange rate impact.” READ MORE
