Biofuels in chile

Regarding Biodiesel and Bioethanol in Chile.

In global terms Bioenergy is 9% of the World Energy Supply (Source: IEA Renewables Information 2007). In addition, the main use of biofuels as of todayis in transportation where the ethanol is the most used biofuel followed in a very small amount by biodiesel (Source: IEA World Energy Outlook 2008).

Regarding the worldwide cost of biofuels, asof today the price for bioethanol ranges between 0,8 and 1,1 USD/liter and for biodiesel is between 0,88 and 1,15 USD/liter. The estimations are that by 2030 cost range for bioethanol will be between0,5 and 0,6 USD/liter and for Biodiesel between 0,57 and 0,75 USD/liter (Source: IEA World Energy Outlook 2006).

The biggest market production of biofuels are located in America (Brazil and UnitedStates) mainly for ethanol with more than 30 million liters, while Europe reach more than 2 millions for Biodiesel and a little more than 2 million liters for Bioethanol. In Asia China is producing 2million liters of Bioethanol.(Source: EarthTrends Environmental Information Portal, World Resources Institute, 2007)

Chile does not have a developed an big biofuel industry. Main results are basedon pilot projects for biodiesel and bioethanol. The potential impact on energy system can be satisfied producing bioethanol from Lignocellulose biomass, where the Lignocellulose biomass capacity is 12Millions TMs/year.

Regarding regulations in Chile, there are 5 initiatives that support biofuels development, which are the following:
1. Ministry of Economics, Supreme Decree 11 (2008)
–Authorizes the use of biofuels in vehicles
– Define specifications of quality for bioethanol and biodiesel.
– Bioethanol -> can be combined with gasoline in 2% or 5%
– Biodiesel -> can be combinedwith gasoil in 2% or 5%
2. Circular Letter No 30 from 16th of May, 2007 from IRS (SII)
– Specific fuel tax exemption for bioethanol and biodiesel (~ -20%)
3. Exempt Resolution No 746 from...