Secondary legislation published for Argentine biofuels law

Argentina’s government has introduced, via decree, some secondary legislation that will guide the implementation of the country’s biofuels law.

The legislation, in force until end-2030, was passed earlier this year, with the government branding it a promotional regime and quarters of the biofuel industry criticizing it as damaging to the sector.

Under the law, the minimum proportion of bioethanol in the gasoline mix remains at 12% and the minimum proportion of biodiesel in the diesel mix is 5%, down from 10% currently. The federal energy department is authorized to make future cuts.

Prices of bioethanol produced from sugar cane and corn will be those established by resolution 852 of September 2021, the decree states, adding that they will be amended in accordance with variations in gas station fuel prices. 

Officials are working on associated rules for biodiesel. In parallel, the federal energy department has 180 days to conduct a sector review and work on more secondary legislation.

The decree, published in the official gazette, states that hydrocarbons companies with biofuel production assets or stakes in associated companies have 12 months to offload them.

The South American grains giant has built a major biofuels industry, serving the domestic and export markets. 

Impacted also by COVID-19 fallout on consumption and demand as well as high inflation and a price freeze, the biofuels sector was hammered in 2020, forcing plant closures and layoffs. Various challenges are underway in the US to lift hefty tariffs on imports of Argentine biodiesel. These tariffs have effectively closed off the US market to Argentine biodiesel.  

Argentina’s government recently announced an electromobility bill that includes a goal of stopping the sale of new internal combustion engine vehicles from 2041.

Picture credit: EITAN ABRAMOVICH / AF