Brazil must produce 1.2 billion liters of biodiesel less in 2021

Brazil closes the year 2021 with an estimate of producing less than 1.2 billion liters of biodiesel. The initial projection for the sector was 8 billion. With the progressive reductions in the mixture of biodiesel in diesel (reaching 10% in May), determined by the National Energy Policy Council (CNPE), production will not exceed the mark of 6.8 billion liters, according to the Associação dos Biofuels Producers in Brazil (Aprobio).

In early 2021, the mix was 13%; but the cut decided by the CNPE froze production, which, according to the sector, is capable of offering a blend of 18% of biodiesel. On December 17, President Jair Bolsonaro approved Resolution No. 25, of November 22, 2021, of the National Energy Policy Council (CNPE), which establishes the establishment of the mandatory blending content of the National Energy Policy as being in the interest of the National Energy Policy. Biodiesel in fossil diesel oil by 10% for the year 2022.

According to Aprobio, with the definition of 10%, for the entire next year, the sector will suffer a cut of 2.4 billion liters in the demand for biodiesel, with an impact of US$ 2.5 billion in income in Brazil and expenditure of $1.2 billion in fossil diesel imports, which are more pollutant.

Aprobio claims that the import is to offset the reduction in biofuel, as Brazilian refineries would not be able to meet the additional demand. Currently, 70% of renewable diesel production comes from soy.

In a statement, Aprobio says that, “with a mixture content of 10% for 2022, the government penalizes the sector, generates unemployment throughout the agribusiness chain, promotes disinvestment, increases pollution, inflation and harms the economy”.

He adds that “the biodiesel market provided a noble use for animal fats and used frying oil, transforming residue into sustainable energy and helping to eliminate inappropriate forms of disposal, thus avoiding the generation of environmental liabilities”.

In Scotland, at the United Nations Conference on Climate Change in 2021 (COP26), the Minister of the Environment, Joaquim Leite, promised that Brazil will expand its goal of reducing greenhouse gas (GHG) emissions from 43% to 50%, until 2030.

In a note released on November 29, right after maintaining the 10% biodiesel blend in 2022, the Ministry of Mines and Energy stated that it follows the principles of the National Energy Policy, and aims to protect consumer interests in terms of price , quality and offer of products.

It also informed that, in January, the new biodiesel commercialization model will begin, foreseen by CNPE Resolution No. 14/2020 and regulated by ANP Resolution No. 857/2021.

The new model will continue to be permanently monitored by the National Energy Policy Council (CNPE) and, if necessary, “timely measures may be adopted” in order to safeguard the National Energy Policy and the National Biofuels Policy.