Biofuel: Recent Developments

Author:Mr Rogério Ferreira
Profession:PLMJ
 
FREE EXCERPT

I – Compulsory addition of biodiesel to diesel used

in Portugal

The publication of Decree-Law 49/2009 of 26 February brings with

it the compulsory addition of biodiesel to the road diesel used in

Portugal in the percentage, by volume, of 6% in 2009 and 10% in

2010. Nevertheless, road diesel must comply with European standard

EN 590 and thus until such time as this standard is altered, the

maximum percentage of diesel that may be added is only 5%. Once

again though, the national legislature has taken the initiative in

the apparent hope that the country can influence the advance of the

European process in respect of biofuel use.

This change to the composition of road diesel by the national

parliament comes about in the wake of the compulsory requirement to

add 5% biodiesel to coloured and marked diesel - commonly known as

agricultural or green diesel – which was introduced by

Decree-Law 89/2008 of 30 May and commenced on 1 July 2008.

The publication of this amendment means that all the diesel used

in Portugal must now contain 5% biodiesel – the maximum

permitted by EN 590 – which places the country at the

forefront in this field, although there is still no consensus in

the scientific field as to the benefits that biofuel holds for the

environment, whereas the overheads associated with its production

are well known.

II – The partial ISP exemption for biodiesel produced

and used in Portugal

Ministerial Order 353-E/2009, of 3 April, regulates several of

the aspects set out in the above-mentioned Decree-Law 49/2009 and

specifically seems to have established a system for calculating the

minimum and maximum prices that will inform the contracts under

which biofuel will be acquired from the national biofuel industry

for use on the national market, using international product and

currency quotations for the purpose.

The schedule to the ministerial order lists the national

biodiesel producers and the quantities that will benefit from a

partial exemption from the Petroleum and Energy Products Duty (ISP)

for which this product is eligible, which was set in 2009 by

Ministerial Order 134/2009, of 2 February, at €280 per

thousand litres. The beneficiary companies and the respective

quantities are as follows for this year and the next:

(unit: kilolitres)

PRODUCER

2009

2010

Iberol

68,104

59,944

Torrejana

62,494

58,338

Biovegetal

52,051

52,763

Prio

52465

51,499

Sovena

36,965

49,894

Enerfuel

14995

14,635

TOTAL

287,074

287,073

It can be concluded from the above...

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