Brasília – A total of 460,000 cubic metres of biodiesel should be sold in the 15th Biodiesel Auction, with delivery due from October 1st to December 31st 2009 or earlier. The auction will be held to meet a need for increasing the rate of biodiesel mixed with mineral diesel to 4%.
The auction will be promoted in August by the National Petroleum, Natural Gas and Biofuel Agency (ANP), which is going to set the date and maximum reference price in an edict.
The rules for the auction were published on Friday (31st) on the Official Gazette. The biodiesel to be auctioned will be divided in two batches: one with 92,000 cubic metres and another for producers who bear the Combustível Social (Social Fuel) label, with 368,000 cubic metres.
Since July 1st this year, a law is effective for the mixing of 4% of biodiesel into mineral diesel, named B4. The government forecasts that this should lead biodiesel production in the country to increase from 1.2 billion litres in 2008 to 1.8 billion litres in 2009.
According to the Brazilian Ministry of Mines and Energy, the expansion of production and use of biodiesel in the country contributes to add value to oleaginous raw materials of domestic origin, with a focus on the inclusion of family farming. Besides, it reduces the use of imported diesel, which is a fossil fuel and more pollutant.
*Translated by Gabriel Pomerancblum
