The National Agency of Petroleum, Natural Gas and Biofuels (ANP) has updated its regulations regarding the voluntary use of biodiesel above the mandatory 15% minimum, marking a significant regulatory stride toward the country’s decarbonization goals.
The measure aligns the Agency’s framework with the new “Fuel of the Future Law” (Lei do Combustível do Futuro), which eliminates the requirement for prior approval to consume biodiesel at levels exceeding the mandatory percentage. This measure directly impacts producers, distributors, and importers, which now possess the legal backing to operate with blends of up to 100% biodiesel (B100). The sectors explicitly named in the measure that can now shift to a higher blend of biodiesel include public transportation, railway networks, inland and maritime navigation, captive fleets, mining and power generation equipment, and agricultural machinery.
According to the ANP, the move aims to prevent disruptions in product commercialization, preserve market competitiveness, and foster the necessary conditions to expand biodiesel consumption across various sectors of the economy.
For AliançaBiodiesel, a coalition formed by the Association of Biofuel Producers of Brazil (APROBIO) and the Brazilian Association of Vegetable Oil Industries (Abiove), the decision highlights the ANP’s sensitivity in crafting a regulatory transition that upholds legal certainty and removes hurdles for sector development.
“Brazil needs rules that encourage those willing to invest in decarbonization, and that is exactly what the ANP has delivered,” stated Jerônimo Goergen, president of APROBIO and member of AliançaBiodiesel.
“This decision ensures that legislative changes do not create barriers to the voluntary use of biodiesel. By guaranteeing a transition period and safeguarding direct purchases by authorized consumers, the Agency provides the market with predictability and cultivates a highly favorable environment for expanding the use of domestically produced renewable fuels,” Goergen added. “It is a technical, balanced measure that perfectly aligns with the objectives of the Fuel of the Future Law.”
André Nassar, president of Abiove and member of AliançaBiodiesel, echoed this sentiment:
“Decarbonization happens when a country creates the conditions for sustainable solutions to be adopted on a larger scale. Biodiesel is already equipped to fulfill this role. The greater the regulatory predictability, the higher the confidence to invest in, produce, and consume renewable energy in Brazil.”
The Biodiesel Blend Policy
Since August 2025, diesel in Brazil has operated with a mandatory 15% biodiesel blend (B15) nationwide, a key component of a broader energy strategy spearheaded by the federal government and the ANP. Compared to conventional fossil diesel, biodiesel can reduce greenhouse gas emissions by up to 80%. Furthermore, it significantly enhances national energy security; prior to 2025, Brazil imported up to 35% of its diesel supply.
Recently, in 2026, the ANP and the federal government announced advanced studies to potentially increase the mandatory biodiesel blend to 25%, further consolidating the role of renewable energies within the Brazilian matrix.
The federal government has progressed in these studies, which anticipate a BRL 30 million investment aimed at technically validating the changes outlined in the Fuel of the Future Law. Planned to be completed by 2029, the testing phase will be coordinated by the ANP in partnership with universities and research centers. The ultimate goal is to guarantee engine performance and safety with these higher blends, in a collaborative process that brings together automakers and biofuel producers.
