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Argentine Renewable Energies Chamber
E
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A number of studies have amply demonstrated that subsidization of fossil fuel prices, as occurs in Argentina, is counterproductive and result in less investment. The domestic market for ethanol is comprised of nine companies in NW Argentina, all of whom use sugarcane as feedstock. As installed capacity grows according to a very specific monthly program, Argentina will end 2010 with an overall ethanol blending that is very close to the mandated E5. The domestic ethanol market will generate the equivalent of some US$200 million a year; due to the slow start in 2010, it will only reach about US$150 million this year. The domestic market for biodiesel is comprised of nineteen companies, all using soy oil as feedstock except for one that operates on used cooking oil. The small and medium size biodiesel producers successfully managed to have the entirety of their capacity assigned to the domestic market and represent fully 44% of the total, allowing the larger producers to continue to focus on export markets. The B5 mandate represents annual sales of about US$770 million. Should this be expanded to a B7 in 2011 as promoted by CADER, it will grow to one billion dollars per annum; and if a B10 mandate is enacted in 2012 it will become a US$1.5 billion market.
