Copec makes the first import of renewable diesel in Chile

This is an automated translation of the original release published in Spanish.

PRESS RELEASE from Copec
August 29, 2024

• Hydrotreated vegetable oil (HVO) is obtained from natural and renewable sources, such as vegetable oils and animal fats, among others, and has a carbon footprint up to 95% smaller than the use of fossil diesel. 
• This fuel seeks to contribute to the national goal of reducing CO2 emissions to less than 95 million tons by 2030 and achieving carbon neutrality by 2050.

Santiago.29.08.24.- Copec announced the first import of renewable diesel in Chile, a national milestone that represents significant progress in the goals of reducing greenhouse gas emissions and reaffirms the Company's commitment to contribute to the energy transition in the country, promoting a cleaner and more sustainable alternative to traditional fossil fuels.

The first cargo of hydrotreated vegetable oil (HVO) is aligned with the national goal of emitting less than 95 million tons of CO2 by 2030 and achieving carbon neutrality by 2050, in accordance with the Paris Agreement, Chile’s Nationally Determined Contribution and the Sectoral Plan for Climate Change Adaptation and Mitigation in the Energy Sector (PSMYA Energía). This plan establishes the goal of using 70% zero-emission fuels in non-electrical final energy uses by 2050 and 15% by 2035.

In this regard, the Minister of Energy, Diego Pardow, highlighted that “the use of low-emission fuels, particularly renewable diesel, is part of the mitigation measures in our Sectoral Plan for Climate Change. The focus must be on ensuring that, in the short term, the energy transition is safe for our system and that we can develop and implement the necessary instruments to enable this and many other milestones for decarbonisation.”

For his part, Arturo Natho, general manager of Copec, said that “the introduction of renewable diesel in Chile is a milestone that complements the country's energy mix and will allow for a faster and safer decarbonization, and that seeks to position the country on a par with developed markets. This is a fuel considered key to the energy transition, since it has a carbon footprint up to 95% smaller than the use of fossil diesel.” Along the same lines, the executive added that “At Copec we reaffirm our commitment to continue promoting cleaner and more sustainable energy alternatives, supporting both our clients and the country in the goal of reducing carbon emissions and combating climate change, hand in hand with innovation.”

The project is part of the company's 89th anniversary, which is celebrated in August, and is aligned with its business model aimed at promoting the country's energy transition process, with a vision of the future in which the coming years will be fundamental.

The new fuel is obtained from natural and renewable sources, such as vegetable oils and animal fats, among others, and its recent import comes from the company Diamond Green, one of the world's largest producers of this fuel, based in St. Charles, Louisiana, and will be used by Copec through a mixture with traditional fossil fuel, in a proportion that allows compliance with current quality regulations.

Along these lines, this first import of HVO will be destined for Copec trucks that distribute fuel in the Metropolitan Region. This, while the authority works on a regulation that will allow progress in the import and commercialization of these renewable fuels in Chile.

Experiences at a global level

By introducing HVO, Chile can move forward in line with developed markets such as the United States, mainly in California, and the United Kingdom, which have rapidly adopted renewable diesel to reduce their greenhouse gas emissions, achieving significant results in mitigating climate change and reducing 50% of their fossil diesel consumption with clean fuels, as is the case in California.

Furthermore, HVO has enormous potential for uses to replace fossil diesel in heavy transport, machinery, mining and automobiles, as this fuel can be used directly in diesel engines without modifications, facilitating a gradual transition to cleaner fuels. For example, in Finland, there are companies that currently offer HVO100 at 70 service stations.