The Brazilian Chamber of Deputies approved the “Fuels of the Future” bill last week, which could increase soybean crushing for biodiesel production to 55.8 MMT in 2025, up from the current 31 MMT forecast for 2024, according to the Brazilian Association of Vegetable Oil Industries (Abiove). The increase in soybean crushing will be necessary to meet targets for the mandatory blending of biodiesel in diesel, set by the bill at 15% in March 2025, with increases of 1 percentage point per year until reaching 20% in March 2030. The current mandatory blending is 14%.
Another change proposed by the bill is an increase in the blending of ethanol into gasoline, which would rise from a minimum of 22% to 27% and a limit of 35%. Currently, the blend can reach 27.5%, with a minimum of 18% ethanol.
The bill will now return to the Senate for approval. If approved, it would then be sent to President Luis Inácio Lula da Silva for his signature to become law.
