July 25, 2012
Argentina to reach ethanol admixture target
Due in part to the nation''s dedication to soy cultivation for biodiesel, Argentina is yet to reach the ethanol admixture government target, N？？stor Garc？-a, lead partner of energy and natural resources at consultancy KPMG, told BNamericas.
"By law, the ethanol -gasoline admixture is set at 5% and by now it''s at around 3%. Production is lacking to arrive at that percentage but it''s growing on year," Garc？-a said. The government introduced the 5% mix in January 2010.
Biodiesel production continues to grow, with one plant of 250,000 tonnes/year and another of 305,000 tonnes/year currently under construction, as well as other smaller plants, Garc？-a said.
Last week, soy prices soar to a record high of US$645.80/year on Friday (July 29) on the Chicago Board of Trade due to a severe drought in the US, according to a news report from Argentina''s state news service T？？lam.
Argentina also experienced a drought during its summer. "The high price of soy is very good for Argentina but due to this year''s drought it has not been possible to take advantage of those extremely high prices," Garc？-a said.
Not all Argentine soy is destined for export - biofuel industry chamber Carbio estimated that 31% of the country''s biodiesel production was distributed on the domestic market in 2011.
The country''s biodiesel admixture is currently at 7%, and a long-awaited hike to 10% should come in before the end of the year, Garc？-a said.