Petrobras Biocombustível speaks about castor seed oil

1/8/2008

With regard to the information published by the press regarding the fact that National Petroleum Agency (NPA) Resolution 7 prohibits the usage, in Brazil, of biodiesel produced from castor seed oil, Petrobras Biocombustível clarifies that:

Petrobras Biocombustível’s plans are not affected by NPA Resolution No. 7, dated March 19 2008. The resolution has an attached Technical Regulation that sets the technical specifications for pure biodiesel (B100) marketed in Brazil, for subsequent blending with diesel fuel at a rate of 3% (B3). Limits have been set for two of the 22 parameters the NPA mentions – specific gravity and viscosity – that could prevent the usage of biodiesel containing pure castor seed oil.

Both in the actions carried out in partnership with family farmers and in the technology that is being deployed at the new biodiesel production plants, Petrobras’ goal has always been to use, initially, blends of up to 30% castor seed oil as raw material. The usage of 30% castor seed oil to produce biodiesel is in full compliance with the NPA’s new specification.

A few important properties will, in fact, even be improved by the addition of castor seed oil as a raw material. For example, adding 30% castor seed oil to soybean oil improves the quality of the biodiesel that is produced, making it compliant with the European standard, and, thus, viable to be exported to cold European regions.

A total of 49,000 tons of the product would be required in order to use these blends at the Candeias (inaugurated Tuesday, July 29), Quixadá, and Montes Claros Plants (scheduled to be inaugurated in August) alone, more than all of the castor seed oil produced in Brazil in the 2007 harvest.

The current difficulty faced to use castor seed oil in biodiesel production does not result from the viscosity of castor seed B100 (100% biodiesel) or even from any of its other physical or chemical properties, rather from the low availability of this oleaginous seed in the market, since the oil industry pays a value for castor seed oil that is above what would be currently economically viable for the fuel segment to pay.

Additionally, Petrobras is the Brazilian leader in the development of technologies to produce biodiesel from different oleaginous seeds, including castor seeds, seeking to ensure appropriate costs and the supply of an increasingly better product, resulting in high engine performance.

Petrobras Biocombustível clarifies it will continue producing biodiesel from castor seeds since there is no technical restriction that might prevent it from doing so.

Petrobras press release