They regulated guidelines for the supply of biofuels
  • Post author:
  • Post category:News
  • Post comments:0 Comments

With Resolution 776/2022, the Government regulated regulations that biofuel processors and mixers must comply with, for supply.

The regulatory framework for biofuels was established by Law 27,640 and is valid until December 2030. There were some details that the enforcement authority had to establish: the Secretary of Energy,

Also read: For more Brazilian biodiesel, soybean oil pulled away from losses in grains and rose almost US$2o in Chicago

In this sense, it was established that the mixers must inform the Directorate of Biofuels of the Undersecretariat of Hydrocarbons, discriminating each mixing center and until the 20th of each month, the estimated monthly demand of biodiesel and/or bioethanol for the following quarterly period for mandatory blending.

In turn, the processors must also inform until the 20th of each month, the availability of the product for mandatory cuts.

The information must be provided through the system of movements of the biofuels market. Then it will be printed, signed and presented at the ticket desk of the application authority as an affidavit.

The Biofuels Directorate will calculate monthly the amounts of biodiesel or bioethanol that the blenders must acquire from the processors for the blend. This information will be communicated through the Biofuels Market Movement System.

Also read: A Brazilian state wants to put a tax on the countryside and the producers compare it with Argentina

The enforcement authority clarified that Failure to comply with the provisions will be considered a serious offense and it will enable the defaulter to assign biodiesel or bioethanol considering the information provided.

New sourcing guidelines

In the case of biodiesel, the mandatory blend percentage is 12.5% ​​for the remainder of November and in the case of bioethanol it is 12%.

If differences greater than 2% are detected between the amounts of biodiesel or bioethanol assigned and those effectively acquired by any of the blenders in previous periods, the Directorate may adjust the biofuel allocations in subsequent months.

Also read: The price of bioethanol will follow the evolution of the value of gasoline

The regulation contemplates that in the cases in which the distribution is not sufficient to satisfy the monthly demand of biodiesel, the missing quantities will be supplied in equal parts by the processors that have possibilities of supplying the biofuel.

The allocation of bioethanol will be carried out by segment, based on sugar cane and based on corn.
The allocation of bioethanol will be carried out by segment, based on sugar cane and based on corn.

The assignment of bioethanol will be carried out by segment, made from sugar cane and cornpro rata and making the calculations based on the incidence of availability.

Operators will have 3 business days to report issues

Mixers must comply with the allocation of volumes made monthly by the Biofuels Department and they must require prior authorization to make purchases that do not have the mandatory cuts as their destination.

Also read: 6 times fewer hectares: they warn that banana producers in Formosa are going through a “terminal crisis”

At the same time, processors and blenders will have a deadline 3 business days to report any inconvenience that could compromise the normal supply of the assigned quantities.

Leave a Reply