Prominent on the demand side is Federal Law No. 11,907 passed January 13, 2005. The law defines biodiesel as a new fuel in Brazil’s energy mix, and as of January 2008, requires a 2% biodiesel component blended to 98% diesel oil, known as B2. By January of 2013, the mix requirement will increase to 5% (B5),with possibilities for higher blend percentages all the way up to pure biodiesel (B100) by authorization of the Brazilian Petroleum, Gas and Biofuels Regulator (ANP), which is given regulatory and fiscal control, by that same law, over production and sale of biofuels. The National Council of Energy Policy (Conselho Nacional de Politica Energética, CNPE) subsequently introduced a number of resolutions to realize the requirements of Law 11.097. Resolution #2 of March, 2008 set a 3% requirement as of July 2008; Resolution #2 of April, 2009 set a 4% requirement as of July 2009 and Resolution #6 of September, 2009 set a 5% requirement as of January 2010. In May 2014, the Minister of Mines and Energy announced that the biodiesel requirement will increase to 6% on July 1, 2014 and 7% on November 1, 2014.
Target
- 7% biodiesel share in diesel by 2015
- 10% biodiesel share in diesel by 2019