Colombia Raises Biofuel Admixture

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March 9, 2021

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(BN Americas) Colombia’s mines and energy ministry has established guidelines stipulating higher biofuel admixtures in fuel. The required percentage of ethanol in gasoline will rise to 10% from 5% in six departments on April 5 next year. The areas subject to the change are Arauca, the San Andrés, Providencia y Santa Catalina archipelago, La Guajira, Norte de Santander, Vaupés and Vichada as well as the municipality of Río de Oro in Cesar department.

The ministry also said the percentage of biodiesel in Colombia’s B10 fuel would rise to 12% in Atlántico, Antioquia, Bolívar, Boyacá, Caldas, Caquetá, Casanare, Cauca, Cesar, Córdoba, Cundinamarca, Bogotá, Guaviare, Huila, Magdalena, Meta, Quindío, Risaralda, Sucre, Tolima and Valle del Cauca departments on April 5 this year.

It also outlined new admixture requirements for other regions.

A draft resolution is available for public comment until March 18. It can be seen here, in Spanish. READ MORE

Colombia temporarily reduces ethanol blend mandate (Ethanol Producer Magazine)

Excerpt from Ethanol Producer Magazine: On March 31, however, the Colombian Ministry of Mines and Energy, along with the Ministries of Agriculture and Rural Development and Environment and Sustainable Development, issued a resolution decreasing the ethanol blend mandate from E10 to E4, effective April 1. According to the GAIN report, the mandate is currently scheduled to increase to E6 in July and E8 in August before returning to E10 in September.

The resolution issued by the government states that excessive rains in sugarcane producing regions this spring calused a shortage of local ethanol feedstock. Domestic production is also expected to be temporarily reduced as ethanol plants perform maintenance shutdowns in April and May.

Historically, a significant percentage of the ethanol needed to meet Colombia’s blend mandate has been imported, with much of that volume imported from the U.S. According to the GAIN report, Colombia was the sixth largest market for U.S. ethanol exports last year. Rising prices for U.S. ethanol, however, when coupled with a two-year countervailing duty on U.S. ethanol implemented by the Colombian government in May 2020, is expected to limit imports of U.S. ethanol in the near term.

A full copy of the report can be downloaded from the USDA FAS GAIN website. READ MORE

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