Brazil will gradually boost biodiesel blend from current 7% to 10% in the next three years.
A bill approved by the Congress’ Lower House aims to increase the biodiesel blend to 8% within the next 12 months, 9% within the next 24 months and finally 10% within the next 36 months.
After the regulation comes into effect, it will allow blending of up to 15% biodiesel if automobile manufacturers approve its use. The proposal is now awaiting presidential approval.
The increased use of biodiesel reduces the costs related to imports of regular diesel and benefits Brazil’s agriculture sector by enabling more investments in the processing of soybeans seeds, a raw material for the biodiesel production in the country.
In May 2014, Brazil increased biodiesel blend to the current 7% from 5%. At that time, the government expected the raise would increase biodiesel consumption in Brazil to 4.2 billion liters a year from the current 3 billion liters.