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Peruvian biodiesel production is forecast to total 215M litres this year, according to the United States Department of Agriculture (USDA) ‘Peru: Biofuels Annual’ report.

The total would be a 2% increase compared to biodiesel volumes the previous year, the 21 November Foreign Agricultural Service’s Global Agricultural Information Network report said.

Biodiesel consumption was expected to total 420M litres in 2023, the same level as in the previous year but significantly higher than 398M litres in 2021.

“This increase is mainly due to economic reactivation after the COVID pandemic,” the USDA said.

Although Peru produces biodiesel using crude palm oil (CPO) as a feedstock, palm oil biodiesel solidifies as temperature drops at higher altitudes, clogging fuel filters and damaging truck engines, according to PetroPeru – the entity that regulates biodiesel production and imports.

“This is the primary reason given for not raising the blend rate above B5, and there has been no move to produce renewable diesel (HDRD), which would eliminate this constraint,” the USDA said.

Peru met the B5 blend rate requirement in 2012.

Biodiesel imports were expected to reach 190M litres, around the same level as the previous year, the report said.

Peruvian biodiesel imports, both 3826.00 (covering blends above B30 to B100) and 2710.20 (petroleum oils containing 1%-30% biodiesel), entered Peru duty free.

Product imported under 2710.20, all from the USA, contained 10% biodiesel, the report said.

“If soyabean oil biodiesel is used (the most common type of US biodiesel), it would perform better in colder temperatures than CPO-based biodiesel when blended at the same levels due to a naturally lower concentration of fatty acids in the feedstock,” the USDA said.

Meanwhile, there was no ongoing research on advanced biofuels in Peru to date, the report said.

“There is also no policy in place to support advanced biofuels research. FAS Lima is unaware of any announcements by Peruvian airlines to being using advanced biofuels in their operations,” the USDA said.