Pedro Mancuello, Deputy Minister of Commerce and Services at paraguay's Ministry of Industry and Commerce (MIC), announced that diesel oil imported for use in vehicles could be replaced by a high-quality biodiesel, made locally with vegetable oil and hydrogen, by 2024.

This forecast, as specified by Mancuello, is part of Paraguay's medium- and long-term plans and alternatives to replace dependence on non-renewable fuels, derived from oil. "We have to create more incentives and transform precarious public transportation into a renewable energy powered, using our available electricity and other technologies, so as not to depend on oil and protect the environment," he said.

With the rise in international oil prices, mainly caused by the war between Russia and Ukraine, several Latin American countries are being forced to take emergency measures to mitigate the transfer of the price of the commodity to the pockets of final consumers. "Paraguay is already in the process of manufacturing a fuel called Green Diesel, or HVO, which is a direct substitute for petroleum diesel," Mancuello added, referring to the biofuel produced from soybeans.

"At first, the cost of Green Diesel was higher (a few years ago), but with oil costs now, I think they're equaling. Currently, we can feed the entire public transport fleet directly with diesel and avoid up to 85% of the carbon emissions of this sector. This can serve to certify the avoided emission and, thus, with this carbon capture credit, finance the change in the energy matrix", concluded.

Source: Canal Rural