Regulation on mandatory use of biofuels issued

The Ministry of Energy and Mineral Resources has officially issued a regulation obliging industries to use bio-fuel in their day-to-day business activities.

The Energy and Mineral Resources Minister?s Decree No. 32/2008 which comes into effect beginning October obliges industries including power producers as well transportation companies to use bio-fuels in their operation.

Industries which use diesel oil are required to use bio-diesel of at least 2.5 percent of their total diesel oil use until the end of 2009 and rumps up the consumption to 5 percent in 2010. Companies engaged in the transportation sector are required to use bio-diesel of at least one percent of their total diesel oil use. Those involved in power production are required to use bio-diesel of at least 0.1 percent until the end of this year and increasing to 1 percent in 2010 of their total diesel oil consumption.

Industries are also required to use bio-ethanol of at least 5 percent of their total gasoline starting January 2009 and will increase to 7 percent in 2010.

The ministry?s said in a statement that by 2020 all the industries are obliged to use bio-diesel and bio-ethanol at least 20 percent and 15 percent of their total fuel consumption respectively. (Bernard)