Peru’s Biofuel industry is facing further set-backs.

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Biofuel set backs in Peru, South America

While Brazil’s ethanol industry continues to boom South American neighbour Peru’s industry is facing further set-backs.

The nation has decided to delay the planned roll-out of an obligatory biofuel blending mandate in the Peruvian capital, Lima, and in the province of Callao in order to avoid the need for imports.

Projected national demand including the capital is 10,000m3 per month and there is currently a production shortfall of 4,500m3 per month.

Sales of the blend will now start in June 2011 rather than 1 October this year, as previously planned. The government has been gradually rolling out an ethanol programme that makes the sale of petrol blends with 7.8% ethanol mandatory.

The first sales started in the districts of Piura and Chiclayo in January and currently a total of 964 service stations across nine regions sell petrol blends containing ethanol. The extension of the mandate to the capital means that a further 949 service stations and pumps will supply it. The final region to be incorporated into the programme under the current timetable will be Tacna in July 2011.

Source Biofuel International

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Posted in Bioethanol Production, Biofuel Funding, Biofuel Production, News

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