Diesel crisis: the regime that allowed the increase in biodiesel cutting has been concluded and they are asking for its extension

After the expiry of the regulation that provided for an increase in the cut to 12.5% ​​of biodiesel in diesel to address the shortage, the Argentine Chamber of Biofuels (Carbio) issued a statement asking for the continuity of the regime.

“We ask for the permanent continuity of the provision beyond the provisions of Article 6 of the aforementioned decree” The Guarantor Authority is authorized to extend this provision for the duration of the exceptional situation that originated it, in order to ensure market supply internal ”as the measure showed the advantages and feasibility of replacing imported diesel.

Faced with the crisis caused by the lack of diesel in several provinces, the Secretary of Energy of the Nation has ordered, with resolution 438/22, an increase in the mandatory cutting of biodiesel in the internal market ofl 5 to 7.5%which exclusively supply non-exporting companies of raw materials or biodiesel with prices and quotas regulated by the Energy Secretariat.

At the same time, last June, the national executive power issued a decree “330/2022 relating to the” additional transitional mandatory cut-off regime for biodiesel “(COTAB)” with which it ordered to increase the supply of diesel through the 5% increase in cut-off with Biodiesel as long as the price that biodiesel companies can supply is equal to or lower than the diesel import parity. With these two measures cutting with biodiesel in diesel fuel can rise up to 12.5%.

It is worth highlighting the fact that on this last section (COTAB), in addition to the reference value, the companies responsible for the execution of the mandatory mixtures they can purchase this additional biodiesel by agreeing on the price and supply of the products with any of the biodiesel companies registered in Argentina. In this way, the supply is ensured in the best possible conditions of quality and price for the consumer.

According to Carbio’s text, the provision took into account art availability of biodiesel production capacity increase the supply of diesel with a 100% domestically manufactured product.

“The past history of using a national 10% cut, as well as the experiences of other countries with cuts above 20%, (Brazil with 12%, Indonesia 30%) and the use of pure B100 biodiesel in fleets of public transport passengers and goods show the technical capacity of biodiesel to replace diesel in transport, in addition to its contribution to improving public health and the environment, thanks to the lower emissions of particulate “fumes” and greenhouse gases that result in as the cut increases, “they noted.

Carbio cited some examples of experiences at the national level that support technical feasibility and benefits for health and the environment.

CLIBA B100 assay: Tests carried out in collaboration with the CLIBA company for a period of one year with pure biodiesel (B100) in urban waste collection trucks, showed a reduction in polluting gas emissions of over 80%. The emission of sulfur dioxide, one of the main air pollutants deriving from the use of fossil fuels, has been reduced to zero.

Urban Bus BioBus Rosario and others: More than 1,300 urban passenger buses in cities such as Rosario, Santa Fe, Buenos Aires, Córdoba, Salta, etc., which operate smoothly with B100 and reduce greenhouse gas emissions by 70%.

B20 Durability test: Tests of 20% biodiesel blends in Gasoil B20 were carried out on diesel fuels widely used in our country together with prestigious technicians and institutions in the automotive sector (Oreste Berta SA). These feasibility tests of the B20 consisted of operation on test benches subjecting the engine to different types of loads and revs, representative of the durability conditions for this type of test. Filming was carried out on average daily from 12 to 14 hours for a period of 4 months, demonstrating the technical feasibility of using mixtures greater than 10% both in general transport and in machinery.

“Faced with all these tests, the Argentine Chamber of Biofuels (CARBIO), underlines the positive of the measure, in the sense that the additional 5% of COTAB allows to replace diesel imports when the price justifies it without affecting the final price. of fuel at the pump, as well as the fact that manufacturing companies can start their own production capacity in the country instead of importing foreign labor with a more expensive product “, they concluded.