NATIONAL BIODIESEL
PRODUCTION & USE PROGRAM
BIODIESEL
THE NEW FUEL FROM BRAZIL

The Brazilian Government has just authorized the commercial use of a
new fuel. Brazil will now begin commercial production of biodiesel, a fuel
obtained from raw materials such as castorbeans, soybeans and oilpalm.
The introduction of biodiesel to the domestic market will generate
significant hard-currency savings for Brazil by reducing imports of
petroleum-derived diesel fuel, as well as helping to protect the
environment and promoting the social inclusion of thousands of Brazilians.
This authorization is the result of joint efforts by the Government in collaboration
with the automotive and fuel industries, as well as the agricultural sector and
research and development, financing and regulatory bodies.
In just 12 months the Government organized the production chain,
established lines of credit, structured the technological base and issued
a regulatory framework for biodiesel. Brazil can now produce yet
another renewable fuel on a commercial scale.
With biodiesel, Brazil embarks on a new cycle in the energy sector,
reinforcing the promotion of renewable sources and of the
diversification energy matrix. Renewable sources currently account for
43.8% of Brazil’s total energy consumption, compared with a world
average of 13.6%. In the developed countries renewable energy
accounts for only 6% of the total on average.
BIODIESEL: THE NEW FUEL FROM BRAZIL
Castorbean
POTENTIAL TO BE A MAJOR WORLD PRODUCER
Brazil has ideal conditions for becoming a major world producer of
biodiesel. It has a vast amount of arable land, part of which is not
suitable for food crops but has the right soil and climate for growing a
range of oilseeds. Brazil also has the technology to implement its
National Biodiesel Production & Use Program (PNPB) in a sustainable
manner.

Biodiesel makes Brazil a global benchmark in the use of renewable fuels.
It first won this position in the 1970s with the introduction of ethanol
made from sugarcane to power automotive vehicles.
The National Alcohol Program, Proálcool, was the largest fossil fuel
substitution program in the world automotive market. It is still
considered a global example of excellence, and Brazil remains the
largest producer and consumer of fuel alcohol in the world.
The experience Brazil has accumulated through the Proálcool serves as
a strong foundation for implementing the biodiesel program and
maximizing the nation’s competitiveness in a relatively short period.
BRAZIL, A GLOBAL BENCHMARK
ONE MORE RENEWABLE ENERGY SOURCE
Oilpalm Sunflower
Biodiesel is a biodegradable fuel derived from renewable sources such
as vegetable oils and animal fats. The oil or fat is chemically combined
with alcohol or methanol in the presence of a catalyst. Brazil already
produces a wide range of oilseeds that can be used as feedstocks for
biodiesel, including castorbeans, African oil palm (Elaeis guianensis),
sunflower, babassu palm, soybeans, and cotton.
This fuel can be a total or partial substitute for petroleum diesel to power
diesel engines in trucks, tractors, pickups, and passenger cars, as well as
motors that generate power and heat. Petrodiesel blended with 2% of
biodiesel is known as B2.There are stronger blends, such as B5 and B20,
all the way up to “neat” biodiesel or B100.
The Program was elaborated by 14 ministries under the aegis of the
Interministerial Executive Committee (CEI), which is coordinated from
the Office of the Presidential Chief of Staff. The Ministry of Mines and
Energy is in charge of the operational management the Program.
The PNPB is essentially a non-restrictive program. Its implementation
contemplates the specific characteristics of each region insofar as
oilseed types are concerned and does not exclude any alternatives. In
addition to the agribusiness aspects, the Program also prioritizes
participation by family agriculture, encouraging the formation of
cooperatives and consortia by small farmers.
Because several areas are involved and in order to provide support for
technical assistance, the Government has also created the Brazilian
Biodiesel Technology Network (RBTB), comprising research institutions
in 23 states of the Federation.
The initial authorization is for 2% of biodiesel to be blended with regular
diesel oil. The National Energy Policy Council (CNPE) will supervise a
gradual increase in this percentage over the next years.
COMPETITIVENESS AND SOCIAL INCLUSION
Commercial use of biodiesel in Brazil is governed by a specific regulatory
framework that makes biodiesel competitive with petrodiesel, taking
into account the wide variety of oilseeds available, measures to
guarantee supply, compliance with fuel quality standards, and the
Government’s social incluses.

CONSUMER WARRANTY
FLEXIBILITY & QUALITY ASSURANCE
Soybean Oilpalm
The National Biodiesel Production & Use Program is not restrictive. It
allows a wide range of oilseeds grown in Brazil to be used as feedstocks.
The vegetable oil produced by crushing the seeds can be refined using a
variety of technological routes (including thermal cracking and ethyl or
methyl transesterification). This flexibility enables participation by
agribusiness and family agriculture units, as well as assuring optimal use
of arable land around the country.
Regardless of the oilseed used as feedstock and the technological route,
biodiesel is being introduced into the national fuel market with a single
set of specifications and international qualification. ANP, the National
Petroleum Agency, is responsible for regulatory oversight.
The blend of 2% of biodiesel with petrodiesel dispenses with the need
to retrofit the conventional diesel engines already in use in Brazil, as is
the case in countries that already use the fuel. In an official letter to the
Government, the National Association of Motor Vehicle Manufacturers
(Anfavea) has assured consumers that factory warranties for diesel
engines will cover running on B2.
the new fuel, and establish the distribution portion of the value chain.
ANP has also revised 18 resolutions on liquid fuels to adapt the rules and
regulations in force to the introduction of biodiesel.
The crop area required to produce the blend of 2% of biodiesel and 98%
petrodiesel will be 1.5 million hectares, equivalent to only 1% of the total
acreage under crops or available for agriculture throughout Brazil (150
million hectares).
HARD CURRENCY SAVINGS FOR BRAZIL
Commercial use of biodiesel starting with the 2% blend creates a
potential internal market of at least 800 million liters per year for the
new fuel in the next three years. This will benefit Brazil’s trade balance
by saving up to US$160 million per year thanks to the use of B2 instead
of imported diesel.
Brazil currently imports 10% of the diesel it consumes. Because the
many vehicles transport cargo and passengers are powered by diesel, it
is used more than any other liquid fuel, accounting for 57.7% of the
total at 38.2 billion liters per year.
Biodiesel can also be used to generate electricity for isolated
communities that currently depend on generators fired by regular diesel
oil. Local oilseeds can be used as feedstocks to produce biodiesel in
these areas.
Biodiesel will also create more jobs in rural areas and in industry. Many
more workers will be needed to grow oilseeds, provide technical
assistance to farmers, and build and operate the industrial facilities that
refine the oil and produce the fuel, as well as in the transportation and
distribution.
TECHNOLO
GOOD FOR THE ENVIRONMENT
SOCIAL INCLUSION
Soybean
Sunflower
Brazil currently has the capability to produce biodiesel of world-class
quality. In addition, it has the conditions to produce the world’s first
ethanol-based biodiesel. Other countries make biodiesel using
methanol, mostly derived from petroleum.
Brazil’s Ministry of Science and Technology (MCT) has been allocated a
budget of US$5.7 million to invest in research on biodiesel and
industrial processes in 2004-05.
The money is being pumped into the creation of the Brazilian Biodiesel
Technology Network (RBTB), comprising 23 universities across the
country alongside traditional research institutions such as Petrobras’s
Research Center - CENPES, the National Technology Institute (INT), and
the National Biofuel Complex, currently being implemented at Piracicaba
in São Paulo State.
Authorization for the use of biodiesel, the onset of widespread
distribution, the differential tax regime recognizing the importance of
oilseed production by family agriculture units – particularly castorbeans
and oilpalms in the North, Northeast and the semi-arid regions – and
the introduction of the “Social Fuel” seal are regulatory instruments
designed to promote social inclusion throughout the new fuel’s
production and value chain.
The Social Fuel seal, awarded by the Ministry of Agrarian Development
(MDA), establishes the conditions for industrial producers of biodiesel to
obtain tax benefits and credit. In order to receive the seal, an industrial
producer must purchase feedstock from family farmers and enter into a
legally binding agreement with them to establish specific income levels
and guarantee technical assistance and training.
With the advent of commercial production, Brazil becomes a potential
exporter of biodiesel, which is already in commercial use in the United
States and the European Union.
The EU aims to ensure that 2% of all the fuel consumed in the region is
renewable by 2005, but it has limited acreage available for growing
rapeseed, the main feedstock produced in Europe, and industrial
capacity is insufficient to meet the stipulated demand. Despite these
constraints, the proportion of renewable fuels is set to reach 5.75% by
2010 according to EU Directive 30, ratified by the European Parliament
in May 2003.
Given the limitations for production growth in Europe, Brazilian biodiesel
enjoys an unprecedented opportunity to build market share in the
continent Europe.
Biodiesel will help improve air quality in major cities by reducing the
amount of exhaust gas emitted by vehicles when the fuel is used as a
partial substitute for petrodiesel.
The use of biodiesel will also enable countries to meet their
commitments under the Climate Convention and could be used to
obtain carbon credits in accordance with the Clean Development
Mechanism (CDM) established by the Kyoto Protocol.
BRAZIL’S EXPORT POTENTIALGICAL DEVELOPMENT
Brazil pioneered the development of biodiesel production technologies,
granting a patent to researcher Expedito Parente in 1980. The research
did not continue because at that time biodiesel was not competitive with
petrodiesel.
Commercial use of biodiesel will drive further technological
development, speeding up the learning curve and strengthening
producers of related goods and services.

The regulatory framework is made up of laws and decrees dealing with
biodiesel-diesel percentage blends, forms of use and taxation. The tax rules
include differential rates depending on the oilseeds used, where they are
grown, and whether they are produced by large agribusiness concerns or
family farmers. Biodiesel feedstocks and the fuel itself are exem
Castorbean
For more information on the National
Biodiesel Production & Use Program, or
to get any other type of information,
please visit the Ministry of Mines and
Energy website:
www.mme.gov.br
Industrial Products Tax (IPI).The Program has also instituted a “Social Fuel” seal.
Guidelines on production of biodiesel and percentage blends with
petrodiesel were established by the CNPE and implemented via two
specific resolutions issued by the National Petroleum Agency (ANP). They
regulate the activities of biodiesel producers, set out specifications for

Comentários

Beatriz 44522795 disse…
Professoraa!!
Adorei esse modo, é mto mais fácil e objetivo!
Uma palma pra "senhora" (pláck).. rsrsrs
Bjos, Paulo 2ºA

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