Brazil is considering raising its biodiesel blending requirement in January 2014 by 5% to 7% and is considering an additional increase of 10% by 2020. Brazil originally mandated a blend rate of 5% for 2013 but with unexpectedly high production and record soybean crops the mandated rate could need to be raised. Conab, Brazil’s crop monitoring agency forecasted a record soybean crop 10% larger than 2012. A blend rate of 7% would demand the use of an additional 9 million tons of soybeans by increasing demand for biodiesel from 3 billion liters to 4 billion liters for 2014. The increased rate would also benefit Petrobas, the state-run oil company which has been forced to import diesel fuel which it has been selling at a loss to make up for shortfalls in refining. Estimates are that the blending increase would save the company $900 million annually. Brazil currently has 64 plants that produce biodiesel which take 85% of their feedstock from soybean oil. Currently there are 10 new plants that are approved for construction and an additional six plants awaiting approval.
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