13 May, 2009

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Following the publication of the EPA’s draft Regulatory Impact Analysis this week which includes proposed changes to the Renewable Fuels Standards Program, the Argentine Renewable Energies Chamber expressed both concerns and optimism regarding the possible effects this will have on the export-driven Argentine biodiesel industry.

Buenos Aires, May 8, 2009 – A recent study published by the Environmental Protection Agency of the United Status (EPA) is promoting biofuels that reduce greenhouse gas (GHG) emissions by no less than 50% when compared to their fossil fuel counterparts. This same report classifies different categories of biofuels and concludes that soy-based biodiesel reduces GHG emissions by only 22%. If approved, the EPA’s proposal could cause grave harm to Argentine biodiesel producers, since more than 95% of Argentina’s biodiesel is made from soy oil. Additionally, the industry is export-driven and the United States is Argentina’s second largest export market after the European Union.

“The EPA’s analysis has the potential to drastically reduce Argentine biodiesel exports to the United States. It makes decisions regarding land use change for countries other than the U.S., yet doesn’t appear to take into consideration the positive effects of Argentina’s No-Till farming methods which plays a role in ensuring that Argentine soy biodiesel meets and exceeds the newly proposed stringent U.S. standards,” said Carlos St. James, president of the Chamber.

“While we fully understand and appreciate each nation’s right to establish standards and goals
for products consumed in their country, facts need to correct. We know that Argentine soybased
biodiesel is among the cleanest and environmentally-friendly options. This has been evidenced in scientific studies developed in the U.S. itself some years ago and more recently by our country’s National Institute of Agronomy Technology (INTA, by its initials in Spanish), both of which show reductions in GHG emissions that exceed 70%.”

The EPA has proposed a 60-day window in which the various industry actors can better understand the assumptions in the study and to offer counterproposals and corrections to this data. “Argentina has sound scientific elements to defend its position. We need to work internally with all industry interests along with relevant government agencies to present a common voice to ensure we are heard properly,” affirmed Lucas Trotz, the Chamber’s Manager. The Chamber is requesting a 40-day extension to the initial window, and various Chamber members will travel to Washington to participate in the July 9-11 workshop being organized by the EPA to discuss the draft.

The Chamber will also seek this extension as member of the Global Renewable Fuels Alliance, a global association whose members represent 65% of world biofuels production. Bliss Baker, Executive Director of GRFA from its headquarters in Toronto added, “Argentina, as one of the world’s largest biodiesel producers and exporters, will undoubtedly play a key role in ensuring that the industry continues to grow sustainably and we will work with them to present our organization’s point of view regarding the EPA study.”

St. James concludes, “We are confident that at the end of the day common sense, a frank and open dialogue, and the facts will carry the day. If not, the ideals of fair and open trade as espoused by the U.S. will take a step backward in the ongoing task of creating global markets.”

This article is dated Wednesday, May 13th, 2009 2:39 pm under , aceite-vegetal, Argentine Biofuels Chamber, Biofuels-2007, biogasoil, biokerosene, biomasa, biomass, Carlos Querini, Conicet, energí­a, George Soros, Jatropha Curcas, Jorge Hilbert, Lula, MDL, Sorgum, tucuman.
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