Brazil will be able to produce enough biodiesel to meet requirements for a 2% compulsory blend with regular diesel from 2008, according to Reuters.
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Production capacity should reach 1.1 billion litres in 2007, with five mills producing up to 49m litres a year, and another five producing 61m litres due to come on-stream shortly.
A further 24 mills each with a capacity of a billion litres are being built.
Only producers with a ‘social fuel’ label, showing that they have a bought a minimum percentage of source crops from family farmers can take part in the program.
Brazil produces around 500m litres of biodiesel in 2005.
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