Oleochem Analytics – Argentina’s Senate has approved on July 16 a biofuels draft bill advocated by lawmakers from Argentina’s ruling coalition Frente de Todos by a 43-19 vote. The new biofuels legislation stipulates lower blending requirements for biodiesel and ethanol.
The measure, which would remain in effect until 2030, will reduce the biodiesel blend from the current 10% to 5%, although the Energy Secretariat would have the flexibility to increase the blending mandate or reduce it to as low as 3% depending on market conditions.
This new blending mandate is likely to increase the volume of soybean oil available for export from Argentina as the volume of soybean oil that will not be used for biodiesel production will have to go to the export market, experts say.
The bioethanol mandate will remain at 12%, with a division of 6% for sugarcane-based ethanol and 6% from corn-based ethanol. The bill stipulates that the ethanol mandate could also be increased or reduced by the Energy Secretariat depending on certain market conditions.
The Argentine Chamber of Deputies gave preliminary approval on July 2 to approve the said draft bill after it had been extended several times because of it controversiality, since the Parliament could not reach an agreement.
The old biodiesel law was set to expire on May 12, but was extended for an additional two-month or until a decision could be taken at the Parliament.