The Brazilian biodiesel industry currently operates at around 40% of its available production capacity, demonstrating that the country has the conditions to expand the supply of biofuel whenever there is an increase in demand. This data, released by the Energy Research Company (EPE), reinforces the scenario considered by the federal government when deciding to prohibit the import of biodiesel intended for the mandatory blending of diesel sold in Brazil. The measure was approved this Tuesday (14) by the National Council for Energy Policy (CNPE) and determines that the biodiesel used to meet the mandatory blending percentage must be produced by units authorized by the National Agency of Petroleum, Natural Gas and Biofuels (ANP). When announcing the decision, the Ministry of Mines and Energy reported that the market itself confirmed that there is sufficient supply to fully meet national demand. The sale of imported biodiesel remains permitted only for other uses foreseen in the regulations. In the assessment of AliançaBiodiesel, the resolution represents an important milestone for the consolidation of the Brazilian biofuel policy. In addition to recognizing the capacity of the industry established in the country, the measure preserves investments made over the past few years and offers predictability for the entire production chain.
Brazil already has all the conditions
According to Jerônimo Goergen, president of APROBIO and member of AliançaBiodiesel, the CNPE's decision corrects a discussion that never found justification from a technical point of view. "From the beginning, we have argued that Brazil did not need to import biodiesel to meet its mandatory blending requirement. The country has the installed capacity, technology, raw materials, and an industry prepared to fully meet national demand. There is no strategic reason to replace a fuel produced here with one from abroad." According to Goergen, the decision preserves a public policy built over almost two decades and strengthens a productive chain that generates thousands of jobs in different regions of the country. "When the government recognizes that the Brazilian industry is capable of supplying the market, it also protects investments, encourages national production, and strengthens the country's energy security. Accepting the import of biodiesel for the mandatory blending would mean weakening a chain that Brazil itself helped to build and which is now a world reference in quality, sustainability, and productive capacity." According to André Nassar, president of ABIOVE and also a member of AliançaBiodiesel, the decision sends an important message to the productive sector and investors. "The CNPE's decision demonstrates that the government sees national biodiesel production as a priority within Brazilian energy policy. It is a sign of confidence in the capacity of the industry established in the country and reinforces a strategy that combines economic development, the valorization of agribusiness, and Brazilian leadership in the energy transition."
Predictability for investments
According to Nassar, the measure also contributes to consolidating an environment of greater predictability for new investments. "When the country signals that it believes in its own capacity to produce renewable energy, it creates the necessary conditions for companies to continue investing, expanding their production and developing new technologies. This strengthens the entire chain and positions Brazil as a protagonist in a market that will be increasingly relevant on the international stage." The CNPE's decision adds to other recent measures aimed at strengthening the regulatory framework for biofuels. At the same meeting, the Council also approved the repeal of Resolution No. 3/2015, adapting the regulations to the changes promoted by the Future Fuel Law and eliminating regulatory overlaps, without altering the rules currently applicable to the commercialization and voluntary use of biodiesel. For AliançaBiodiesel, the set of decisions adopted by the government reinforces an important guideline for the future of the Brazilian energy matrix: expanding the participation of renewable fuels based on national productive capacity. At a time when several countries are accelerating their decarbonization policies, the organization believes that valuing the industry established in Brazil is a decision consistent with the role the country can play in leading the global energy transition.
This text was translated by machine from Brazilian Portuguese.