Biodiesel sector predicts recovery in 2017


The increase in the percentage of biodiesel in common diesel - from 7% to 8% in 2017 - is expected to reverse the retraction in consumption last year, according to Aprobio, which assemble companies in the sector.
Production is expected to rise by about 8%, says Erasmus Battistella, president of the association and of the BSBIOS producer. With a resurgence of the economy, however, the boost can reach up to 12%. The change of proportion is determined by law, approved in 2016. By March 2019, the rate will be 10%.
The boost comes in good time: in 2016, the drop in consumption is projected at about 4%, according to ANP (regulatory agency) data. The idleness of the sector is now 50%.
\"This year, the problem of idleness will not be solved, but it should decrease by 15%\", says the executive.
In the case of BSBIOS, which in 2016 had the largest share of fuel deliveries, the rate is below 10%, according to Battistella. The company`s investments, however, should not be resumed in 2017.
We will wait for the market to show signs of resumption to expand again\".
Source: Folha de São Paulo Journal 01/12/2017