BIOMASS HUB

Argentina is set to implement a 5 percent biodiesel blending mandate, which could possibly reach 20 percent by 2015.

Argentina, a leading exporter of biodiesel and the No. 1 soyoil supplier, was due to introduce the law on January 1, but it was delayed until the government agreed to allocate supply quotas to the country’s top producers. The law is designed to boost production by the country’s small- and medium-sized distillers.

Reuters reports that Argentina produced about 1.2 million tonnes of biodiesel in 2009 — virtually all of which was exported — and industry groups estimate an output of between 1.6 million and 2.2 million tonnes this year. The supply is based on Argentina’s vast production of soybeans, the country’s leading export.  In addition to providing the world with soybeans and soy flour, Argentina is the leading exporter of soybean oil.

Argentina established a National Biofuels Program (Programa Nacional de Biocombustibles) through Resolution 1.156/200449 of the Secretariat of Agriculture, Livestock, Fisheries and Food.  Its objectives were to:

• Promote the production and sustainable use of biofuels as a renewable source of energy alternative to fossil fuels, with special attention to biodiesel from vegetable and animal oils and ethanol from sugar cane, maize and sorghum;

• Support and advise rural sectors on the development of facilities used in the production of biofuels as an opportunity for local and regional development;

• Cooperate with public institutions devoted to research into and expansion of the use of biofuels; and

• Promote public and private investment.

Since the Biofuels Law (26.093) was enacted in 2006, there has been heavy investment in the sector, but production has been aimed only at foreign markets where fuel-mix policies were already in force as a means to curb greenhouse gas emissions from vehicles.

Delays in implementing a biodiesel blending mandate are attributed to protracted negotiations over the price of biodiesel being sold in the local market.