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May 5, 2016

Brazilian Industry Proposes Biodiesel Blend of 20% to 30% Veg Oil

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

In a seminar held yesterday in Cuiaba, which is the capital of Mato Grosso, the Federation of Industries of Mato Grosso (FIEMT) in association with various organizations promoting the use of biodiesel, proposed a voluntary increase in the use of vegetable oil in biodiesel. They would like to see a 20% mixture of vegetable oil in petroleum diesel (B20) for state and government vehicles, over the highway trucks, public transportation vehicles, garbage trucks, etc. and a 30% mixture (B30) for train locomotives, tractors, agricultural equipment, construction equipment and industrial uses.

The Brazilian Minister of Mines and Energy decreed last September that biodiesel must contain at least 7% vegetable oil (B7), but the mixture could go higher on a voluntary basis. The supply of soybean oil far exceeds the current demand for biodiesel and industry representatives contend that they could easily accommodate the proposed increase. Economists for the Brazilian Vegetable Oil Processors Association (Abiove) indicated that with the installed capacity of the processing industry, they could increase biodiesel production by 80%.

The center-west region of Brazil is the largest soybean producing region of the country, yet they consume a relatively small amount of biodiesel. Soybean processors in the center-west region, which includes the states of Mato Grosso, Goias, and Mato Grosso do Sul, have the capacity to produce 2.9 billion liters of biodiesel, but they currently produce 1.7 billion liters and only 500 million liters are consumed in the region.

Industry studies indicate that a mixture as high as 30% vegetable oil (B30) would not pose any problems for the five types of engines they tested. An increased mixture would benefit soybean producers and consumers by reducing pollution and improving public health.