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BIODIESEL, THE NEW FUEL FROM BRAZIL
 The
Brazilian Government has just authorized the commercial use of a new
fuel. Brazil will now begin commercial production of Biodiesel, a
fuel obtained from raw materials such as castor beans, soybeans and
oil palm.
The introduction of Biodiesel to the domestic market will generate
significant hard-currency savings for Brazil by reducing imports of
petroleum-derived diesel fuel, as well as helping to protect the
environment and promoting the social inclusion of thousands of
Brazilians.
This authorization is the result of joint efforts by the
Government in collaboration with the automotive and fuel industries,
as well as the agricultural sector and research and development,
financing and regulatory bodies.
In just 12 months the Government organized the production chain,
established lines of credit, structured the technological base and
issued a regulatory framework for Biodiesel. Brazil can now produce
yet another renewable fuel on a commercial scale.
With Biodiesel, Brazil embarks on a new cycle in the energy
sector, reinforcing the promotion of renewable sources and of the
diversification energy matrix. Renewable sources currently account
for 43.8% of Brazil’s total energy consumption, compared with a
world average of 13.6%. In the developed countries renewable energy
accounts for only 6% of the total on average.
POTENTIAL TO BE WORLD PRODUCER
Brazil has ideal conditions
for becoming a major world producer of biodiesel. It has a vast
amount of arable land, part of which is not suitable for food crops
but has the right soil and climate for growing a range of oilseeds.
Brazil also has the technology to implement its National Biodiesel
Production & Use Program (PNPB) in a sustainable manner.
The Program was elaborated by 14 ministries under the aegis of the
Interministerial Executive Committee (CEI), which is coordinated
from the Office of the Presidential Chief of Staff. The Ministry of
Mines and Energy is in charge of the operational management the
Program. The PNPB is essentially a non-restrictive program. Its
implementation contemplates the specific characteristics of each
region insofar as oilseed types are concerned and does not exclude
any alternatives. In addition to the agribusiness aspects, the
Program also prioritizes participation by family agriculture,
encouraging the formation of cooperatives and consortia by small
farmers.
Because several areas are involved and in order to provide
support for technical assistance, the Government has also created
the Brazilian Biodiesel Technology Network (RBTB), comprising
research institutions in 23 states of the Federation.
The initial authorization is for 2% of biodiesel to be blended
with regular diesel oil. The National Energy Policy Council (CNPE)
will supervise a gradual increase in this percentage over the next
years.
ONE MORE RENEWABLE ENERGY SOURCE
Biodiesel is a biodegradable fuel derived from renewable sources
such as vegetable oils and animal fats. The oil or fat is chemically
combined with alcohol or methanol in the presence of a catalyst.
Brazil already produces a wide range of oilseeds that can be used as
feed stocks for biodiesel, including castor beans, African oil palm
(Elaeis guianensis), sunflower, babassu palm, soybeans, and cotton.
This fuel can be a total or partial substitute for petroleum diesel
to power diesel engines in trucks, tractors, pickups, and passenger
cars, as well as motors that generate power and heat. Petrodiesel
blended with 2% of biodiesel is known as B2. There are stronger
blends, such as B5 and B20, all the way up to “neat” biodiesel or
B100.
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