Oct 16, 2015

Biodiesel in Brazil May Now Contain More Vegetable Oil

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

Diesel fuel currently sold in Brazil must contain at least a 7% blend of vegetable oils in petroleum diesel, but the Brazilian government has authorized that the percentage of vegetable oil may now be increased. The National Petroleum, Natural Gas, and Biofuel Agency (ANP) recently published in the Federal Registry new allowable limits for biodiesel blends.

For biodiesel sold at Brazilian gas stations, the fuel may contain up to 20% vegetable oil. The biodiesel used in locomotives and agricultural and industrial machinery, it may contain up to 30% vegetable oil. Biodiesel used for experimental applications may be 100% vegetable oil.

The primary vegetable oil used in these blends is soybean oil, but the amount of soybean oil used in all of Brazil's biodiesel has been capped at no more than 80% of the total. The cap was put in place in order to encourage the development of alternative vegetable oil and not to just rely solely on soybean oil.

Brazil's soybean production continues to expand and Brazilian farmers are expected to produce another record large soybean crop in 2015/16 if the weather cooperates. The total Brazilian soybean production in 2015/16 could surpass 100 million tons for the first time.