The mandate was increased 1 March after the country’s National Energy Policy Council approved the measure at the end of 2017.
Brazil’s Ministry of Mines and Energy anticipates that the new blend will see demand for biodiesel grow by 1 billion litres in 2018. This introduction of B10 (a 10% blend of biodiesel with conventional fossil fuel) coincides with the soybean harvest to ensure abundance of supply. Soybean is a key raw material for the production of biodiesel.
The previous blend mandate was set at 8% (B8) and was introduced 1 March 2017. In the press release announcing the policy, the ministry said that the B10 mandate could reduce diesel imports coming into Brazil and increase value within the biodiesel segment of the agricultural sector.
Ubrabio, a Brazilian biofuel association, estimates that the introduction of B10 will increase biodiesel production by 29% in 2018 compared to figures from 2017. This represents an expected 5.4 billion litres of biodiesel.
Earlier this year, the Brazilian President Michel Temer signed the country’s national biofuels policy into law. The policy, called RenovaBio, is designed to reduce uncertainty and stabilise domestic fuel consumption to meet the country’s obligations under the Paris Agreement and enhance energy security.