Energy and Natural Resources

The Secretariat of Energy establishes new specifications for biodiesel

The National Secretariat of Energy (the “Secretariat”) enacted Resolution N° 6/2010 by which it set forth new quality specifications applicable to Biodiesel to be delivered by authorized Producing Plants. Such non-fossil fuel shall be blended with diesel oil in at least 5% in volume, measured over the total quantity of the resulting product, and shall be mandatorily used all over the country with the exception of ships, mining, first-load fuels, Antarctic diesel oil and other non-compatible uses to the discretion of the Secretariat.

The mentioned percentage is the minimum limit imposed by the Biofuels Law 26,093 (the “Law”) for the blend that shall be sold in all gas stations operating in Argentina.

The new specifications replace those established by Resolution N° 1283/2006 issued by the Secretariat and apply to all Biodiesels other than pure non-blended (B100) that shall continue to be governed by the 2006 regulation.

Breach of compliance with quality specifications shall enable the imposition of sanctions contemplated in the Law, such as interdiction of producing plants, exclusion of the producers’ registry, fines, and revocation of tax benefits granted to the defaulting company including loss of tax benefits.

For further information on this topic please contact Juan Martín Allende