The Government of Argentina rushes efforts to increase the percentage of ethanol containing gasoline. Currently, the percentage of this biofuel is 10%, according to official and private sources, the blending proportion could rise to 12 or 12.5%.
The ethanol used in the country (about 788 million cubic meters) comes from the production of sugar cane and corn. 60% is made from corn and 40% from sugarcane. In the country there are five plants ethanol plants and 9 linked to sugar mills. When ethanol production began, in 2010, 100% came from sugar cane. In 2012 there was with 6.5% share of corn ethanol, which rose to 35% in 2013 to 55% in 2014 and to the level of 60% last year.
“Political will is to raise the blending,” said an official source, who admitted, however, that companies from Adefa, the organization that brings together automotive terminals, reported that they would have to work in an engine calibration.
There are technicians from the Ministry of Energy heading for that task, according to reports. “When these things get fixed there will be a change,” said the official source.
While the sugar sector could use sugarcane production surplus, to the corn ethanol industry it means a consolidation of its growth and opening the door to new investments. The five companies of corn bioethanol have already made new investments of US $ 500 million, but there could be more projects. “There are other US $ 100 million ready to go,” said Martin Fraguío, executive director of the Association of Corn and Sorghum Argentino (Maizar). Today one million tonnes of corn (around 4% of the crop ) is used for ethanol, and it is estimated that the measure could increase demand by 200,000 / 300,000 tons.