Brazil implements biodiesel standard

Brazil has put a new renewable fuels standard into effect for 2008, requiring all diesel used in the country to contain 2 percent biodiesel.

The announcement was made by Mines and Energy minister Nelson Hubner, who said the regulation would reduce carbon gas emissions.

Hubner said there should be enough biodiesel to meet the demand, but said there could be initial delivery problems in remote parts of the country.

The minister said 800 million liters of biodiesel will be needed annually to meet the new requirement. He said Brazil already has the capacity to produce more than three times that amount.

Brazil primarily uses soybeans as a feedstock for its biodiesel, with castor seeds, sunflower seeds and palm fruits also being used.

The country, which is poised to edge out the U.S. as the world's No. 1 producer of ethanol, plans to increase the biodiesel regulations to require a 5 percent blend by 2013.

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