Agência Brasil*
Brasília – To provide incentives to the production and introduction of biodiesel in the national market, new contracts for the purchase of the product were signed yesterday (25) at a ceremony at the Presidential Palace. Six refining companies agreed to supply Brazilian oil giant Petrobras, up to the end of June 2007, with 170 million litres of biodiesel. All of these companies have the "Social Fuel" stamp, established to identify biodiesel producers who promote social inclusion and sustainable development.
This is the second purchase by Petrobras through public bids. According to the Ministry of Mines and Energy, all the biodiesel bought by the state-owned company will be turned to fuel distributors to be mixed in with the conventional diesel. The third and fourth bids have already been executed, though the contracts have not yet been signed. The total volume negotiated up to now is 840 million litres.
According to the Ministry of Mines and Energy, this total is enough to answer to the demand starting in January 2008, when all the diesel oil sold in the country must include 2% biodiesel. But around 1,000 petrol stations already sell biofuel in Brazil. Up to the end of the year, this total should have reached at least 3,000, according to Federal Government estimates.
Biofuel is produced from oleaginous seeds, like castor seeds, dendê, sunflower and soy. According to Mines and Energy minister Silas Rondeau, the project is important to the country as it represents environmental and social gains and contributes to the generation of jobs, mainly in poorer regions of the country.
*Translated by Mark Ament
