The country is into B4 with expectation for B5
The addition of 4% biodiesel in the formula of fossil diesel, adopted from July, shall increase the consumption of this fuel to approximately 1.6 billion liters this year. From this month, the addition of biodiesel in diesel oil goes from 3% to 4% (named B4 in the sector), and the companies which are biofuel producers already think forward: B5. The addition of B4 will make the consumption of biodiesel in Brazil reaches 1.6 billion liters in 2009 in contrast to 1.1 billion in 2008.
The chairman of the União Brasileira do Biodiesel (Ubrabio), Odacir Klein, remembers that Brazilian biodiesel industries, according to data from the Agência Nacional do Petróleo, Gás Natural and Biofuels (ANP), has capacity installed to produce up to 3.6 billion liters per year. "The capacity installed allows the supply of B4" easily, emphasizes Klein.
Despite this increase in the market with B4, the agents of the sector have greater ambitions and are about to see their wish accomplished. Klein says that when he met President Luiz Inácio Lula da Silva, in Saudi Arabia, he informed that the B4 would be used, but aiming at B5. "The sector expectation is that we have the B5 next year", asserts the chairman of Ubrabio. By implanting the B5, Brazil will begin to consume nearly 2.3 billion liters of biodiesel per year. Klein claims that the anticipation of B5 shall be accomplished, thus the biodiesel program of the Federal Government has provided a good result.
For the chief executive officer of BSBIOS, Erasmo Carlos Battistella, despite the market of biodiesel is too new (begun in January 2008), it is well structured. "Of course that all new market undergoes improvements", says Battistella. He reiterates that the auction system has changed from virtual to personal and from yearly to quarterly (what he considers an evolution). Now the greatest concern of the sector is to discuss the future with the government, whether or not the auction model will keep or change to free market. He defends that if the change happens, a very strict inspection will be necessary.
"The biodiesel sector needs the B5 in 2010, and later, to discuss the next steps" says the chief executive officer of BSBIOS. He emphasizes that biodiesel causes less environmental impact than the fossil fuel, improving life conditions in large cities. BSBIOS participates in studies to achieve the search as for the reduction of gas emission caused by the use of biodiesel. This work shall be published next months.
As for a closer reality, Battistella believes that no impact will be observed in price for consumer with the rising to B4. He emphasizes that, currently, a reduction in the cost of diesel oil is observed. Finally, he highlights the social reflex of biodiesel producer as income and employment creator in the field.