April 29 (Renewables Now) - Brazil's Petroleum, Natural Gas and Biofuels Agency (ANP) announced on Tuesday that a little over 1 billion litres (264.2m gallons) have been contracted in the 72th biodiesel auction.
The average price of BRL 2.713 per litre achieved in the tender resulted in a total contract value of around BRL 2.77 billion (USD 503.8m/EUR 465.3m). Of the total volume sold at the tender, 99.36% were from producers with the Social Fuel Seal, awarded under a government incentive to source raw materials from small farms.
This particular auction faced some obstacles as it had to be rescheduled due to the economic impact of the international public health emergency caused by the COVID-19 pandemic.
Brazil's biodiesel auctions are organised to ensure the steady mandatory increase of biodiesel in diesel sold at the pump, established in the 13,263 law and ANP Resolution 16. The 72th tender covers domestic biofuel supply from May 1 to June 30, 2020, ANP noted.
(BRL 1 = USD 0.182/EUR 0.168)