Brazil Enters B4 Era: 4% of Biodiesel Is Added to All Diesel

Brazil will be soon holding an auction to meet the need for increasing the rate of biodiesel mixed with mineral diesel to 4%. For that a total of 460,000 cubic meters of biodiesel should be sold in the 15th Biodiesel Auction, with delivery due from October 1st to December 31st 2009 or earlier.

The auction will be promoted in August by the National Petroleum, Natural Gas and Biofuel Agency (ANP), which is going to set the date and maximum reference price in an edict.

The rules for the auction were published on Friday, July 31st, on the Diário Oficial (Official Gazette). The biodiesel to be auctioned will be divided in two batches: one with 92,000 cubic meters and another for producers who bear the Combustí­vel Social (Social Fuel) label, with 368,000 cubic meters.

Since July 1st this year, a law is effective for the mixing of 4% of biodiesel into mineral diesel, named B4. The government forecasts that this should lead biodiesel production in the country to increase from 1.2 billion liters in 2008 to 1.8 billion liters in 2009.

According to the Brazilian Ministry of Mines and Energy, the expansion of production and use of biodiesel in the country contributes to add value to oleaginous raw materials of domestic origin, with a focus on the inclusion of family farming. Besides, it reduces the use of imported diesel, which is a fossil fuel and more pollutant.

Petrobras in Nigeria

Brazil's state-controlled oil and gas multinational Petrobras plans to increase its investment in Nigeria, where it has already been operating for 11 years, announced last Friday (31th) the president of Petrobras, José Sérgio Gabrielli.

The project was announced after a meeting with the president of Nigeria, Umaru Yar'Adua, in an official visit to Brazil, to discuss means for expanding the company's operations in the African country.

The Brazilian minister of Mines and Energy, Edison Lobão, who also attended the meeting, informed that a technical mission from Nigeria is going to visit Brazil in the next few days to discuss the details concerning the expansion of Petrobras' presence in the African country.

"There is a willingness to expand the relations between Brazil and Nigeria, and the government wishes that Petrobras will have a stronger participation in the country," said Lobão. Nigeria is the main supplier of oil to the Brazilian market.

ABr