Weber Economics & Finance


September 2017, Vol. 4 (1), ISSN:2449-1662

© Author(s) 2017. This work is distributed under the Creative Commons Attribution 3.0 License.

Research Article

Towards the B20? An Analysis of the Capacity and Potential of Biodiesel Production in Brazil

Luís Oscar Silva Martins1 & Roberto Antônio Fortuna Carneiro2

1Feira de Santana, Bahia, Brazil. Master in Technologies Applied to Bioenergy.
2 Salvador, Bahia, Brazil. PhD from the Post-Graduate Program in Energy and Environment, UFBA.

 

Accepted 11th September, 2017; Available Online 13th September, 2017.


Abstract:

Biodiesel production in Brazil started with the advent of the National Program for the Production and Use of Biodiesel (PNPB). A program that established specific standards for the production and commercialization of biofuel and institutionalized the percentage of biodiesel blend in diesel, initially set at 2%. In few years, the government policy had developed, culminating in the current blend percentage of 8%. Therefore, the main goal of this research was to analyze the capacity and potential of biodiesel production in Brazil, in order to achieve eventual compulsory demand for B20. A study was carried out regarding the installed production capacity, as well as regarding the effective production of biodiesel in the country, from the production of diesel and the compulsory demand established in Law. The research also analyzed the need to expand the soybean planted area in order to meet this eventual demand. The results demonstrated that for a supposed use of 20% biodiesel in diesel, in terms of manufacturing capacity, Brazil would not have problems in achieving it, since the industries work with extensive idle capacity. However, when simulated the need to produce biodiesel with what was actually manufactured during a historical series from 2006 to 2015, it can be noted that there is a worrisome growing gap between these numbers, revealing that if the country does not invest in alternative raw materials and greater regional distribution of industrial plants, adapted to their respective local characteristics, it may face supply problems in the biodiesel chain.

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