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Market Chatter: Brazil to Test B20 Biodiesel Blend Amid Global Oil Crisis

-- Researchers at Brazil's Maua Institute of Technology are set to begin critical testing in May to investigate the viability of increasing the nation's biodiesel mandate to 20% according to a Reuters report on Thursday.

As a major producer of biofuels from soy and sugarcane, Brazil currently mandates a 15% biodiesel blend, but soaring fossil fuel prices and the need to reduce reliance on imported energy have accelerated the push for higher concentrations.

The initial phase of the study will involve installing a test engine next month to evaluate the long-term effects of B15 and B20 blends over a 300-hour period, as per the report.

The report noted that researchers will specifically monitor for filter clogging, injection system behavior, and injector nozzle wear.

A second phase is also planned to analyze pollutant emissions for blends ranging from B7 to B25, it added.

The move is a direct response to the global energy disruptions caused by the US-Israeli conflict with Iran.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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