21. November 2025 Meghan Sapp

Argentine biodiesel industry looks to Brazil as inspiration for higher blending

In Argentina, Sin Mordaza reports biodiesel industry again demanded an urgent reform of Law 27,640 and warned that the current scheme is hitting the Santa Fe Industrial Corridor hard, the area that concentrates the greatest productive capacity in the country. The president of the Argentine Chamber of Biofuels, Luis Zubizarreta, was categorical in stating that “the law is useless ,” since it maintains prices set by the State, quotas per company, and segmentations that paralyze competition.

Santa Fe represents 85% of the installed biodiesel capacity —2.2 million tons out of a national total of 2.9— but can only market about 10% due to current restrictions.

This, they warn, implies a direct loss of industrial jobs, less provincial revenue, and a halt to new energy and logistics projects in the industrial hubs of San Lorenzo, Puerto San Martín, and Villa Gobernador Gálvez. According to Zubizarreta,  “companies cannot invest if there is no freedom to compete . ”

The comparison with Brazil deepens the sector’s concerns. The neighboring country has raised the mandatory biodiesel blend to 15% and plans to reach 20% by 2030, while promoting investments exceeding US$15 billion. For the Santa Fe industry, this model demonstrates that growth is possible with predictable regulations.  “Brazil is showing what Argentina could achieve if it modernizes its regulatory framework ,” Zubizarreta emphasized.