Argentina mandates that diesel fuel contain renewable component

Buenos Aires, Feb 5 (EFE).- The Argentine government said Friday that, in compliance with a 2006 law, all diesel fuel in the country must contain at least a 5 percent renewable component.

"Biodiesel will be incorporated into the energy matrix, initially accounting for 5 percent of domestic demand, that is 742 million liters (196 million gallons) per year, which is equivalent to the amount of conventional diesel fuel imported by Argentina in 2008," Planning Minister Julio de Vido told a press conference.

The minister predicted that over the next four years biodiesel's share of the conventional diesel-biofuel blend will rise to 20 percent.

The law mandating that diesel fuel contain a renewable component dates back to 2006 and stipulates that the measure must go into effect in 2010.

Separately, the minister said that in the face of "persistent record-high temperatures" in the current Southern Hemisphere summer, the electrical system has responded "perfectly within the normal parameters."

He acknowledged that "there may have been some isolated" problems with the service, but nothing serious.

De Vido added that the government has already invested 18 billion pesos ($4.66 billion) to expand electricity generation and transport capacity in Argentina.

In that sense, he said investment projects totaling 29 billion pesos ($7.51 billion) are currently being carried out, in addition to planned future projects that will cost 31 billion pesos ($8.03 billion).