The Brazilian government is launching, today, the National Biodiesel Program, which will permit the introduction of biodiesel fuel on the domestic market.

During the ceremony at the Planalto Palace, President Luiz Inácio Lula da Silva will sign measures to regulate the insertion of biodiesel into Brazil's liquid fuel energy matrix, which already includes gasoline, diesel, natural gas, and hydrous and anhydrous alcohol.

Biodiesel is a renewable fuel produced from plant sources such as castor beans, soybeans, dendê palm nuts, and cotton seeds.The intent of the government in launching the program is to add biofuel to diesel fuel in a 2% mixture in 2005.The new fuel should also contribute to diminishing the volume of imported diesel fuel.

According to the Ministry of Science and Technology (MCT), Brazil consumes 37 billion liters of diesel oil each year.Imports account for 15% of this total, that is, 6 billion liters, at a cost of US$ 1.2 billion.

The National Biodiesel Program will also stimulate the development of national research and equipment-making activities, as well as helping to create rural jobs in the family farming sector, especially in the Northeast region.

To stimulate the use of biodiesel, the government also plans to confer social certificates on producers who encourage the participation of family farmers in the biofuel production process.

With these certificates, the producers will be eligible for benefits such as tax incentives.The National Economic and Social Development Bank (BNDES) also announced measures involving financial support and investments in biodiesel.

One of these measures is a 25% extension in the total loan payoff period for the purchase of machinery that uses at least 20% biodiesel fuel.The new fuel can also be used to generate electricity in remote communities.

According to the MCT, biodiesel is also beneficial to the atmosphere, since it reduces emissions of carbon monoxide by 40% and of sulfur dioxide by 100%.

(From brazzilmagazine , Dezembro 06, 2004)

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