Santa Fe Province Demands Higher Biodiesel Blend Mandates in Argentina’s National Biofuels Law Reform

The Government of Santa Fe has formally positioned itself on National Bill S.809-26, supporting the federal reform’s emphasis on deregulation and competition while demanding five specific amendments to strengthen domestic production capacity. Provincial Minister of Productive Development Gustavo Puccini argued that maintaining biodiesel at a 10% blend mandate while raising bioethanol to 15% in gasoline creates unjustified regulatory asymmetry, particularly given existing technical standards already permit blends up to 20%. The province emphasized that current idle production capacity and closed plants require stronger policy signals to attract capital investment.

Santa Fe’s reform package includes immediate elevation of the mandatory biodiesel cut to B15 with a pathway toward B20 when domestic production achieves cost competitiveness against imported diesel. The province proposes reserving 40% of market access for independent producers through transparent auctions and economic participation caps, leaving the remaining 60% for integrated refiners and industrial operators. This market division aims to prevent concentration while maintaining commercial viability across different producer categories.

Additional modifications target state discretionary authority, proposing that the Energy Secretariat only temporarily reduce mandatory percentages during supply emergencies for maximum 90-day periods. Santa Fe also seeks incorporation of biofuels projects into the RIGI large investment incentive regime, specifically for renewable diesel, sustainable aviation fuel, and green hydrogen initiatives.

The province’s strategic rationale centers on biodiesel’s role in reducing diesel imports, preserving foreign exchange, maintaining industrial employment, and strengthening regional economies. Provincial authorities cited Brazil’s advancement to B15 this year with projections reaching B20 by 2030 as regional competitive context. Puccini emphasized that volatile international petroleum markets and geopolitical conflicts have enhanced renewable fuel competitiveness, creating positioning opportunities for Argentina given Santa Fe’s established production infrastructure spanning the complete value chain from soybean oil and methanol feedstocks through final fuel production.

The province demands guaranteed competition in strategic raw material access to prevent dominant positions over soybean oil and methanol supplies, seeking transparent pricing rules for independent producers. Santa Fe simultaneously participated in separate discussions convened by the National Ports and Navigation Agency regarding the Troncal Navigable Waterway concession, pressing for rapid contract awards to reduce logistics costs.