CAMPINAS, Brazil (ICIS) – A Brazilian proposal could increase the nation`s biodiesel blend rate to 15% from 5%, a move that a trade group warned could overwhelm the country`s logistics if done too quickly, it said on Thursday.

The lower house of the Brazilian congress is analysing the plan.

The logistics are not there among Brazil`s network of biodiesel producers, shipping companies, fuel distributors and fuel retailers, according to Ubrabio, the country`s biodiesel trade group.

In the past, Brazil has gradually increased its blend rate, allowing the industry to improve its logistics, according to Ubrabio`s executive director, Sergio Beltrao.

“We defend a gradual progression [of the blend rate], such as the one we`ve seen between 2008 and 2010”, he said.

Brazil has been increasing its biodiesel blend rates since 2008, when it reached 2%. Later, in July 2008, Brazil increased the mixture to 3%, to 4% in July 2009, and more recently to 5% in 2010, said Beltrao.

At the same time, increasing the blend rate should reduce carbon dioxide emissions and improve Brazil`s trade balance, Beltrao said.

By: Leo Siqueira