Nov 10, 2009
Biodiesel Producers In Brazil Propose A B20 Blend For Urban Areas
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
The Brazilian government has directed that as of January 1, 2010, the nationwide biodiesel blend in Brazil will be set at B5, which means that the diesel fuel sold in Brazil will be a mixture of 5% vegetable oil and 95% petroleum, but the biodiesel producers in Brazil want to increase the percent of vegetable oil even more. The Brazilian Biodiesel Association (Uniao Brasileira do Biodiesel - Ubrabio) recently proposed increasing the blend to B10 nationwide and B20 for large urban areas by 2015.
Currently, the biodiesel production capacity in Brazil is approximately 4 billion liters and that is expected to increase to 5 billion liters with the completion of eight new biodiesel plants in Brazil in 2010. The eight new biodiesel plants under construction are located in the states of Goias, Rio Grande do Sul, Parana, Mato Grosso do Sul and Mato Grosso. If the nationwide blend was increased to 10%, it would require 2.5 billion liters of biodiesel production, only half of the anticipated capacity of 5 billion in 2010. To achieve the additional 20% blend in the large urban areas, the biodiesel producers calculate that it would require an additional annual production of 2.5 billion liters.
The higher rate of biodiesel blend for large urban areas is being proposed as a way to reduce urban pollution. Biodiesel fuel has been shown to greatly reduce the emissions of sulfur oxides and sulfates (major components of acid rain) in addition to significant reductions of hydrocarbons, carbon monoxide, and particulate matter (all potential components of smog). In fact, biodiesel is the first and only fuel to have a complete evaluation of emission results and potential health benefits submitted to the U.S. Environmental Protection Agency under the Clean Air Act. These programs include the most stringent emissions testing protocols ever required by the EPA for certification of fuels or fuel additives. There is no doubt that increased blends of biodiesel would have positive health benefits for urban dwellers in Brazil.
The biodiesel producers also addressed critics of the program who contend that increased biodiesel production could result in food shortages due to food crops being diverted to produce fuel or additional deforestation occurring because more farmland would be needed to grow the necessary feedstock. They point out that Brazil has approximately 90 million hectares of degraded pastures, which were cleared generations ago. These degraded pastures would be ideal locations for additional soybean production, the main feedstock for biodiesel, or the production of other feedstock vegetable oils as well.
In Brazil, biodiesel fuel is approximately 30% more expensive than pure petroleum diesel, but when public health issues are accounted for, the biodiesel proponents feel the reduced pollution and its positive impact on public health and the environment, actually make biodiesel fuel cheaper than petroleum based diesel. They also point out that increased biodiesel production would create additional employment opportunities in rural areas.