Brazil grants Inpasa biodiesel import license

Brazil's federal revenue service granted corn ethanol group Inpasa a license for biodiesel imports, which are highly restricted.

Inpasa received the authorization for its Nova Mutum and Sinop mills. Both plants produce anhydrous and hydrous corn ethanol in central-western Mato Grosso state.

Legislation requires biodiesel producers or importers to register with the federal revenue service to trade biodiesel in the domestic market.

Brazil prohibits biodiesel imports, except for discretionary blending above the mandate or for experimental use.

In November, oil regulator ANP unlocked biofuel deliveries into the country, but the national energy policy council temporarily revoked the measure before it was to take effect on 2 January.

The revocation came in the wake of the anticipated increase in the biodiesel blending mandate to 14pc in March 2024, from the current 12pc.

"We decided that it is essential to create a working group to study the impacts of imports," mines and energy minister Alexandre Silveira said in December. "Until this group completes its mission, Brazil will continue to defend domestic output."

Inpasa did not immediately respond to Argus' requests for comment.

By Laura Guedes