The biodiesel industry in the Rio Grande do Sul: challenges and opportunities

Abstract

ABSTRACT The main purpose of this paper is to describe recent developments in the biodiesel industry of Rio Grande do Sul and assess the main challenges and opportunities for growth that is foreseen for the sector until 2020. The prospect of growth in demand for biofuels in Brazil and abroad and increased consumption of protein meals in developing countries are factors that contribute to intensify the development of Brazilian biodiesel in the coming years. The study identified reasons which support the claim of gradual increase in the mandatory blending of biodiesel in the diesel oil and the need to remove the tax internal obstacles and external tariffs that limit the local processing and supply of feedstock. In the absence of such measures, the sustained expansion of biofuel production in Rio Grande do Sul may be frustrated. In addition, in order to the State preserve its leading role in national production, it is essential to enable large-scale production of alternative oilseeds, such as rapeseed. Key words: biodiesel; soybean oil; Rio Grande do Sul. Artigo recebido em 18 jan. 2012