Brasília - The Brazilian government wants to authorize the introduction of biodiesel fuel on the domestic market by the end of this year. Biodiesel can be added to mineral diesel at a 2% ratio without infringing the warantee on diesel vehicle engines. Representatives of the sector met today with President Luiz Inácio Lula da Silva to discuss the matter.

The utilization of biodiesel in Brazil is intended to add a new fuel to the country's energy matrix, on the basis of self-sustainable projects that take into account price, quality, assured supply, and a policy of social inclusion. According to the Minister of Mines and Energy, Dilma Rousseff, through the National Biodiesel Production and Use Program the government is developing criteria for the implantation of social incentive instruments.

The idea is to encourage the cultivation of castor-oil plants and dendê palms in the poorest regions of the country. These products are essential to the production of biodiesel. It is estimated that producing enough biodiesel to supply the 2% mixture can generate over 150 thousand jobs in 2005, especially in the family farming sector. Biodiesel can also be used to generate electricity in isolated communities.

The introduction of the new fuel on the domestic market will reduce diesel imports, which currently amount to approximately 9%. Besides supplying the domestic market, farther down the road the program envisions exporting the product, which is already used in the United States and some European countries, such as France and Germany.

Agência Brasil
Reporter: Ana Paula Marra
Translator: David Silberstein
08/13/2004