FAS Reports on Colombian Biofuels Industry

Production increasing as government mandates E-85 capability.

USDA's Foreign Agriculture Service has confirmed that the Colombian government has issued a decree that beginning in 2012 all new vehicles must bear E-85 flex-fuel technology. Biofuels blend goals of E-10 and B-5 are expected to be reached by 2010 as mandated. This year in Colombia, ethanol production is expected to set a new record high and biodiesel production is expected to rise as five new facilities enter into production.

 

Ethanol production in Colombia started in late 2005 and palm-oil biodiesel production in late 2007. At present, Colombia is the second-largest producer of biofuels in Central and South America. Brazil is number one.

 

Five of the 13 sugar mills in Colombia are producing a total of 1.05 million liters of ethanol per day. Biodiesel production has been increasing at a slower pace than initially expected due to delays in building refineries. Five new plants are expected to enter into operation this year.

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