BUENOS AIRES, Dec 2 (Reuters) – Argentina on Monday announced an increase in the mandatory mix of biodiesel used in domestic diesel supplies to boost an industry hit by punitive anti-dumping duties in the European Union, its main market.
It also ordered the country’s thermo-electric generating plants to use biodiesel, further raising demand for the fuel made form soyoil.
Oil companies will have to raise to 10 percent from 8 percent the mix of biodiesel added to diesel sold in Argentina as of Dec. 1, Planning Minister Julio De Vido said.
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Argentina is the world’s top exporter of soyoil-based biodiesel. Shipments to the EU plunged this year as the bloc moved to slap anti-dumping duties on imports of Argentine and Indonesian biodiesel arguing they were hurting European producers.
The measures taken by Argentina will increase supplies of biodiesel on the domestic market by 450,000 tonnes and will save the country $50 million a year on fuel imports.
One third of Argentina’s installed capacity for biodiesel will go to domestic consumption, De Vido told a news conference.
Argentina is exporting more soyoil as European demand for its biodiesel has declined.
