Argentina plans to extend biodiesel, ethanol blends

Buenos Aires — Argentina's President Alberto Fernandez said his administration is working on a bill to extend a mandatory mix of biodiesel and ethanol in diesel and gasoline, bringing relief to the sector.

The law for the mix is due to expire in May, but it will be renewed, Fernandez said late Feb 9 in a televised press conference in the northern province of Tucuman, a huge source of sugarcane for making ethanol.

"The north does not have to worry about what will happen to biodiesel or what will happen to bioethanol because there has been a very large investment and what you have to do is preserve that investment," he said.

Argentina produces all of its own biodiesel — mostly from soybeans — for a 10% mix in diesel and all of its own ethanol from corn and sugarcane to meet a 12% blend requirement in diesel.

Fernandez added that there will be improvements made to the law, without providing specifics.

There had been speculation in the market that changes could potentially reduce the mix requirements, but Fernandez appeared to say that wouldn't happen.

"What we do have to do is make things work," he said. "For us, things that work are those that produce, are sold and grow. And so when we say, 'Let's review what is working,' it is not to reduce, it is not to stop producing, it is not to stop giving work, it is to produce more so that that production serves more to Argentina."

He added that he wants farmers and biofuel producers to increase output.