Bio Diesel in Brazil Article - PeachParts Mercedes-Benz Forum

Gary F. · #1 07-13-2006, 10:53 AM

07/13/2006
Dow Jones News Services
(Copyright © 2006 Dow Jones & Company, Inc.)

SAO PAULO (Dow Jones)--Brazil's energy giant Petrobras (PBR) purchased 600 million liters of biodiesel in two electronic auctions on Wednesday that offered a record 1.15 billion liters from local producers, the National Petroleum Agency, or ANP, said.

It was the first time in four auctions that supply beat demand, ANP said, showing growing interest in local biofuel producers to increase capacity to meet demand for the 800 million liters that will be required annually to comply with Brazil's new biodiesel law. Under the law, all diesel fuel must include a 2% mixture of biodiesel, a fuel made from animal fats and vegetable oils.

Growing supply in Brazil already has Petrobras mixing 2% biofuel in diesel, two years before the law goes into full effect.

ANP's first biodiesel auction took place in November, followed by a second auction in March 2006.

Six companies participated in the third ANP auction, which took place Wednesday morning. Four companies were winning bidders. Nineteen companies participated in the fourth auction later in the afternoon, with 16 companies winning bids to provide Petrobras with biodiesel in 2007.

ANP said Wednesday's auction was more competitive than past auctions, forcing companies to lower their starting prices by as much as 8.3%. The average price per cubic meter was 1,753.79 Brazilian reals ($796.81) in the third auction and BRL1,746 in the fourth. Winning bidders included Brasil Biodiesel, Fertibom, Agropalma, Granol, Agrosoja, Fiagril, Barralcool, Bsbios, Caramuru, Biominas and Oleoplan.

Brazil's biodiesel program was created as a social program to provide small family farmers in the north and northeast with a market to sell oilseed plants tax free, or at a greater tax break than larger farm operations in the south and southeast.

-By Kenneth Rapoza, Dow Jones Newswires; 5511-3145-1488; kenneth.rapoza@dowjones.com

(END) Dow Jones Newswires

07-13-06 1037ET

Copyright (c) 2006 Dow Jones & Company, Inc.

TheDon · #2 07-13-2006, 10:56 AM

brazil has the right idea when it comes to being energy self suffcient... i say DEATH TO THE SUV

F18 · #3 07-13-2006, 12:22 PM

Gary...Thanks! Its motivating to know what is going on with countries on this side of the pond. We are slowly getting there......

I am just wondering if there are any restrictions on blending Biodiesel with our new federally mandated ULSD fuel which will be available starting this fall? Granted, alone it is a cleaner burning fuel....but it would be a real setback to the fledgling BioDiesel initiative in the US if there is some fine print that says the fuel companies are restricted from blending anything with USLD for on road use.

Does anyone know for sure what the status is for a BioDiesel/USLD blend??

87tdwagen · #4 07-13-2006, 12:52 PM

They may not be winning World Cups anymore, but they sure are winning the energy game without doubt. They don't buy from anyone anymore, how cool is that.

Big difference is they started with government owned energy sector and then slowly psudo-privatize it. In any event, the goals and objectives of the energy sector are aligned with national interest first.

Our problem here is that the energy sector owns the government, and as such, the government's national goal is to promote the interests of the energy sector, so I doubt that anyone in Washington even thinks that self-sufficiency is in the national interest, it certainly isn't in the energy sectors's current best interest.

Funny how a slight change in wording order can create such problems

TwitchKitty · #5 07-13-2006, 04:41 PM

This link goes to a thread I posted on a related topic a while back. Brazil is doing interesting things with fuel.

http://www.peachparts.com/shopforum/showthread.php?t=153769