Chile OKs E2 ethanol, B5 biodiesel blending

In Chile, the National Energy Commission decreed that two percent ethanol blends and five percent biodiesel blends would be allowed under new rules for fuel. The limits were designed around limitations in the capability of Chilean buses to run effectively on higher blends. The minister of energy said that the decree is designed to reduce exposure to climbing world oil prices.

Late last year, member nations of the Southern Agricultural Council (Argentina, Bolivia, Brazil, Chile, Paraguay and Uruguay) agreed to cooperate on biodiesel development and production.

Brazil has become world-renowned for its ethanol industry, but Argentina has (more quietly) become a major biodiesel producer. Bolivia, Chile, Paraguay and Uruguay have industries largely in the experimental and pilot phase, but all have biofuels policies in place, including mandates.

Recently, the Argentine federal government increased the export tax on soybeans, soy products and corn, but exempted biofuels from increases. This move is expected to spur exports of Argentine biodiesel and ethanol to the EU and the US. The province of Santa Fe, which hosts most of the major biodiesel plants, has additional incentives in place.

Argentina is expected to produce 428 million gallons of biodiesel in 2008, as much as four times 2007 production. Renova, Vicentin SAIC, Glencore, Aceitera General Deheza, Bunge and Repsol are among companies working in joint ventures that will construct four new biodiesel plants with over $135 million in invested capital.

Free Subscription to the Daily Biofuels Digest e-newsletter

Related Stories

Gold Star Biofuels to construct 77 Mgy of small biodiesel reactors in Chile

  In Chile, Ghana-based Gold Star Biofuels announced that it has won a contract to construct 77 Mgy of biodiesel capacity. B20 biodiesel will be utilized at a 43MW Energy Partners Chile production...

Argentina, Bolivia, Brazil, Chile, Paraguay and Uruguay sign biofuels pact

In Paraguay, member nations of the Southern Agricultural Council (Argentina, Bolivia, Brazil, Chile, Paraguay and Uruguay) agreed to cooperate on biodiesel development and production. Brazil has be...

Dakar Rally off-road race receives biodiesel-powered entrant

The 2009 Dakar Rally, the most well-known and contested off-road rally in the world, received a biodiesel entrant when Kenya Kwanza team announced that it would use biodiesel, and partnered with the E...

Ghana’s Gold Star Farms to commence jatropha biodiesel production this year; 5 million acres under contract

In Ghana, Gold Star Farms said that it has obtained jatropha-growing commitments from farmers holding 5 million acres, and will commence biodiesel production this year at its plant in Nkawkaw in the e...

US tax loophole gives $1 per gallon biofuel blending credit to producers adding 0.1% petroleum to imported biodiesel

In Europe, biodiesel producers are complaining about a US tax loophole that allows traders to capture a US tax credit of $1 per gallon by importing Malaysian biodiesel, adding 0.1% petroleum diesel to...

Canadian fuel terminals inadequate for B2 conversion, truckers’ study finds

In Canada, the Canadian Trucking Alliance released a study on the impact of the national B2 biodiesel standard. The study highlights challenges with biodiesel storage, blending and transportation. The...