Argentina debates new biofuels law amid industry concerns

The Argentine Congress is debating a new national biofuels law that proposes increasing the mandatory blending of bioethanol in gasoline from 12% to 15% and biodiesel in diesel from 7.5% to 10%.

In the province of Córdoba, the legislation is viewed as a strategic opportunity to transform agricultural production into energy, expand industrial activity, and create jobs. Córdoba’s bioenergy ecosystem is a major player, with its large companies producing approximately 70% of the corn-based bioethanol used for fuel blending in Argentina.

However, the Chamber of Regional Small and Medium-Sized Biofuel Companies (CEPREB) has raised alarms regarding the current draft. CEPREB President Federico Martelli warned that the law, as written, could threaten the survival of 25 plants and thousands of jobs by favoring large oilseed companies with existing idle capacity. The group argues the bill does not encourage new investment but rather shifts the market toward major players. CEPREB has proposed technical alternatives, such as a 12.5% or 15% blend with specific production segmentation, to preserve regional plants in provinces like Buenos Aires, La Pampa, Entre Ríos, and San Luis.