Argentina is at a turning point for its biofuels industry. The Senate is debating a new law that could transform the biodiesel market, but disagreements among industry players are holding up the project. Meanwhile, in Brazil, a concrete example demonstrates that pure biodiesel can be a viable alternative for heavy transport.
The official proposal, championed by Senator Patricia Bullrich, aims to raise the mandatory biodiesel blend from the current 7,5% to 10% , with a system that would allow for up to 15% through co-processing. However, the debate over who will supply this additional market has sparked a fierce confrontation between large exporting companies and regional SMEs.
The struggle between large exporters and SMEs
The CIARA-CEC and CARBIO chambers, representing the oilseed industry and soybean biodiesel producers, support the project and are calling for greater market openness. They maintain that Argentina is the world's leading exporter of soybean oil and has an installed industrial capacity that is currently underutilized. In their statement, they went so far as to compare the situation to a team that leaves its best player on the bench: "Let's take Messi off the bench so he can play every game . "
On the other side, the Chamber of Regional Small and Medium-Sized Biofuel Producers (CEPREB) denounces that the project benefits large companies concentrated in Santa Fe and harms plants in the interior. According to its executive director, Federico Martelli, the proposal represents a “profound injustice” and could bankrupt companies that have invested for years in provinces such as La Pampa, San Luis, Entre Ríos, and Buenos Aires.
In the Senate, the Mining, Energy and Fuels Committee and the Budget and Finance Committee have adjourned several times. While bioethanol appears to be on track for an agreement to increase its blend from 12% to 15%, biodiesel remains the main sticking point. The government's proposal includes a transition period for small and medium-sized enterprises (SMEs) until 2030, but these businesses believe that the biodiesel dilemma and the new legal framework do not adequately protect their interests.
Brazil proves that the B100 is viable
While Argentina debates the issue, Brazil offers a compelling example. A truck from the fleet of JBS, the world's largest meat company, has traveled 500.000 kilometers using only pure biodiesel (B100) , without registering any engine failures or abnormal component wear. For three years, the vehicle made the journey between Lins, in the interior of São Paulo state, and the Port of Santos, transporting frozen food for export.
The project, which began in 2023, has already accumulated more than 1,1 million kilometers traveled by the entire fleet of the transport company TRS, which operates with B100 for both container transport and the transport of live cattle. According to the methodology of the GHG Protocol Brazil, the use of pure biodiesel allows for a reduction of up to 99% in CO₂ emissions compared to conventional diesel. In total, nearly 1.000 tons of CO₂ equivalent have been avoided, a figure comparable to taking 232 private cars off the road for a year.
The fuel that comes from the activity itself
One of the most remarkable aspects of the Brazilian case is its circular economy model. The B100 fuel used by JBS trucks is produced from beef processing waste and used cooking oil . In other words, the tallow and fats left over as a byproduct of meat processing are transformed into the fuel that powers the trucks transporting that same meat. The chain is self-sustaining.
This approach has gained traction in Brazil, where beef tallow has become an increasingly important raw material for biodiesel production. Biopower, one of the country's largest biodiesel producers, supplies the fuel and operates the first B100 refueling station approved by the National Agency of Petroleum, Natural Gas and Biofuels (ANP). This station, known as a bioponto, is located at the JBS complex in Lins and has two pumps and a storage capacity of up to 46.000 liters.
Implications for Argentina and the region
The Brazilian experience comes at a crucial time for Argentina, where legislative debate could define the sector's future. Business associations argue that increasing the mandatory biodiesel blend would allow the country to leverage existing industrial capacity, generate employment, and reduce dependence on imported fossil fuels . Furthermore, greater biodiesel use would contribute to the decarbonization of heavy transport, a sector that is difficult to electrify.
However, the lack of agreement in the Senate is creating uncertainty. Senator Carolina Moisés warned that the biodiesel conflict should not block the comprehensive review of the law and proposed moving forward with a draft opinion that leaves the discussion open for that segment. For her part, Bullrich defended keeping both fuels in the same bill and asked legislators to "put an end" to the debate.
Next Wednesday, the committees will meet again with the expectation of reaching a decision. Meanwhile, the case of Brazil demonstrates that pure biodiesel is not only technically viable, but can also be a powerful tool for reducing emissions and adding value to agricultural production. The question is whether Argentina will be able to overcome its internal divisions to seize this opportunity.
The debate in the Argentine Senate reflects a broader challenge: how to balance the interests of large corporations and SMEs in a sector that is strategic for the energy transition. The Brazilian example shows that biodiesel can be much more than a complement to diesel fuel, and that its use in its pure form is a real alternative for heavy transport. If Argentina reaches an agreement, it could take a significant step toward a more sustainable energy mix, leveraging its enormous production capacity and its leadership in the soybean sector. The ball is now firmly in the legislators' court.
