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Ministry of Agriculture, Livestock and Food Supply - Embrapa

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Biodiesel<br />

The use <strong>of</strong> oleaginous plants for energy purposes was first proposed in<br />

Brazil in 1975. The proposal resulted in the Plan for the Production <strong>of</strong> Vegetable<br />

Oils for Energy Purposes (Pró-Óleo). Its objective was to generate vegetable oil<br />

surpluses in order to make its production costs competitive vis-à-vis petroleum's.<br />

The Plan contemplated mixing 30% <strong>of</strong> vegetable oil to diesel oil, with the possibility<br />

<strong>of</strong> completely replacing diesel with vegetable oil.<br />

The greatest challenge at present is to meet the goals established in<br />

the National Program for Biodiesel Production <strong>and</strong> Use, as set forth in Law n°<br />

11.097 <strong>of</strong> 13 January 2005, which introduces biodiesel into the Brazilian Energy<br />

Matrix <strong>and</strong> determines that the diesel oil sold to final consumers throughout<br />

the national territory must be at least 2% (B2) biodiesel by 200823 <strong>and</strong> 5%<br />

(B5) by 2013.<br />

The current national biodiesel production structure is still incipient <strong>and</strong><br />

mainly based on experience with pilot plants, which means rather small final<br />

volumes. The ANP calculates that Brazil produced approximately 736,100<br />

liters <strong>of</strong> biodiesel from March to December 2005. Nevertheless, the first auction<br />

for the delivery <strong>of</strong> 70-million liters beginning in January 2006 altered the<br />

development pattern <strong>of</strong> the market. Table 10 shows the estimated national<br />

biodiesel production for 2006 <strong>and</strong> 2007.<br />

It will be necessary to produce approximately 800-million liters <strong>of</strong><br />

biodiesel in 2008, during the initial phase <strong>of</strong> the program, in order to meet the<br />

legal requirements.<br />

The National Petroleum, Natural Gas <strong>and</strong> Bi<strong>of</strong>uels Agency (ANP) is<br />

currently analyzing several authorization requests <strong>and</strong> after the operation <strong>of</strong><br />

Table 10. Brazilian biodiesel production.<br />

Type <strong>of</strong> undertaking<br />

Units installed <strong>and</strong> operational (5)<br />

Units installed not yet authorized (14)<br />

Extension <strong>of</strong> installed units (5)<br />

Projects in the design stage (16)<br />

Total (million liters)<br />

Source: ANP <strong>and</strong> MME.<br />

23 The deadline for adding 2% biodiesel to diesel oil from petroleum <strong>and</strong> the compulsory purchase <strong>of</strong><br />

biodiesel with a social stamp have in fact been brought forward to January 2006.<br />

81<br />

Production capacity estimated<br />

2006<br />

48.10<br />

125.60<br />

146.80<br />

380.00<br />

700.50<br />

2007<br />

48.10<br />

125.60<br />

146.80<br />

811.00<br />

1,131.50

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