Brazilian biodiesel producers look for export agreements with Spanish oil firms

Brazilian biodiesel producers look for export agreements with Spanish oil firms

Greentech Lead America: Brazilian biodiesel producers are
looking for export agreements with Spanish oil companies after the European
country moved to cut off imports of the renewable fuel from Argentina.

Erasmo Carlos Battistella, president of the biofuel trade
group Associacao dos Produtores de Biodiesel do Brasil, will discuss the issue
with Spain’s ambassador in Brasilia.

Spain is reducing trade ties with Argentina after the
South American nation said it would seize control of YPF SA (YPFD) from the
Spanish energy company Repsol YPF (REP) that’s creating a market for Brazil’s
biofuels industry, Battistella said.

It’s opened up a major export opportunity for Brazilian
producers. Argentina was a big supplier there. Battistella expects trade
contracts to be signed within three months, according to a report in Bloomberg.

Spain revised an incentive program last month to exclude
biofuels produced outside Europe from meeting government requirements for using
renewable fuel. The revision in incentive program blocked imports from
Argentina and other nations in the region. Battistella will ask that Brazil be
included on the list of approved suppliers.

Brazil’s biodiesel plants have annual production capacity
of 6.94 billion liters (1.83 billion gallons). Of that, 15 factories with 4.59
billion liters of capacity have been approved for exports, Battistella said.
Spain purchased 1.87 billion liters of biodiesel from Argentina in 2011.

editor@greentechlead.com