Bolivia approves zero tariff for the import of equipment for the implementation of biodiesel plants

The following is a machine translation of a Ministry of Hydrocarbons and Energy release

In order to encourage the national production of biofuels and reduce dependence on traditional diesel, the cabinet of ministers of the national government approved a supreme decree that establishes zero tariffs for the import of equipment intended for the implementation of biodiesel plants in the country.

These incentives will allow the private sector to import machinery and factories for biodiesel production without tariffs or Value Added Tax (VAT). This measure will facilitate the entry of equipment necessary to boost local biodiesel production.

Biodiesel is a renewable biofuel produced from natural resources such as vegetable oils, such as soybean, palm and sunflower, among others, which is used as an alternative to conventional diesel fuel in diesel engines. The approved incentive is linked to the fact that plant crops are exclusively destined for sale to the state-owned YPFB. This strategy seeks to reduce the country's dependence on traditional diesel imports.

According to the Minister of Economy and Public Finance, Marcelo Montenegro, the initial investment to establish a biodiesel plant can be around 30 million dollars, of which 12 million are for the factories and between 15 and 18 million for working capital.

These plants, the authority explained, can produce up to 40 million liters of biodiesel, equivalent to one and a half months of diesel imports. With the implementation of 5 to 6 additional factories within a period of 8 to 14 months, import substitution of up to 50% could be achieved, and with the biodiesel and HVO (Hydrotreated Vegetable Oil) plants, up to 80% in 18 months.

"This government push seeks to have the private sector actively participate in biodiesel production, using crops such as soybeans, cusi, totaí and other plants with the capacity to extract oil, processed in new factories," Montenegro said.