Brazil biodiesel production needs regulation changes to grow - Ubrabio
(ADPnews) - Oct 27, 2010 - Despite its current growth potential, Brtazil's biodiesel production may stagnate if there are changes in the legislation which regulates the sector, Odacir Klein, president of the Brazilian Biodiesel Union (Ubrabio) said yesterday.
According to the executive, the 2.4 million cu m (84.755m cu ft) expected biodiesel production for 2010 represents only 47% of the installed capacity of the sector.
If there is no change in the regulation, this output will not change, Klein noted during the presentation of a study with projections for the sector elaborated by the Getulio Vargas (FGV) foundation and supported by Ubrabio.
According to Klein, the regulation should change in a way to guarantee an increase of the biodiesel demand.
The 5.1 million cu m which Brazil is able to produce are enough to meet a 10% biodiesel blend to diesel, compared with the current 5%, the study of FGV shows.
Brazil's biodiesel production may be an important factor for the generation of income for small farmers, the coordinator of FGV's projects, Cleber Guarany, said at the event.
A total 20% of the raw materials used in the production of biodiesel is cultivated by family farmers, or 108,000 families.
The potential for increase of the segment may benefit some 570,000 families in 2020, he added.