Petrobras could save US$960 millions with 7% biodiesel mix

Written by Claudio Muñoz on

February 12, 2014

According to a study made by ABIOVE (Brazilian Association of Vegetable Oil Industries), Petrobras could save up to US$960 million (R$2.3 billions) this year if implemented a 7% mix biodiesel in diesel. Today, the percentage of biodiesel in diesel is 5%. According to the study, an increase to 7% would mean an additional consumption of 1.2 billion liters of biodiesel per year. Anticipated for 2014, increasing the mix of biodiesel in fossil diesel will however not be implemented this year. The measure, however, could help provide survival Petrobras and the biodiesel industry, which operates half of idle capacity. Last year, Brazil imported US$8.3 billion in diesel fuel, an increase of 24% compared to 2012, according to Brazil's Ministry of Development. The imports are necessary because Petrobras is already operating at maximum refining capacity, while domestic consumption grows apace. Also, the country is highly dependent on on road transport, and as it increases production, it needs more fuel. Thus, the state can not supply the domestic market with local production and needs to import fuel at higher prices than those charged in the country, and is Petrobras the one paying the bill. Back during the first term of President Lula, when it launched the National Program for Biodiesel, the plan was to increase the mandatory blending over the years. In 2008, it was set at 2%, rose to 5% in 2010, and then just stopped. Today, biodiesel plants operate at 50% idle capacity. According to Erasmus Batisttella, president of Aprobio (Brazilian Association of Producers of Biodiesel), three factories were shut down last year: Grupal (Mato Grosso), Camera (Rio Grande do Sul), and Biopar (Paraná). Link: