«Colombian imports of biofuels have boosted more competitive prices for oxygenated gasoline.».
Allowing ethanol imports has resulted in benefits for those demanding oxygenated gasoline, without conflicting with local production, ensuring supply, improving quality, reducing GHG emissions, and more competitive prices.
Since 2005, biofuels have been used in Colombia with the aim of reducing pollutant emissions from gasoline and ACPM through the use of bioethanol derived from sugarcane and biodiesel extracted from palm oil, with a blend of 10% fuel alcohol and 90% fossil-origin gasoline in the south of the country (E10 oxygenated gasoline).
Subsequently, the Conpes 3510 document of 2008 set the guidelines for its development, allowing for competitive production increases, positioning as exporters of biofuels, diversification of the energy basket, and an environmentally sustainable performance of the entire production chain.
Many Colombians are unaware of the benefits of biofuels; in the case of gasoline, its oxygenation with fuel alcohol improves octane and reduces CO2 emissions. Imports of fuel alcohol, as a backup for national production, have maximized these benefits.
In the country, regular and extra gasoline have an anti-knock index of 81 and 87, respectively. By adding 10% fuel alcohol, this index increases to 84 (in the case of regular) and to 89 (in the extra), improving performance and combustion efficiency in the vehicle's engine.
Ethanol generates 70% less CO2 emissions compared to fossil-origin gasoline, meaning that 10% oxygenated gasoline with fuel alcohol emits 71% less emissions than non-oxygenated gasoline. These benefits do not vary and are exactly the same for ethanol of any origin (national, imported, from cane, from corn, etc.), as they are chemically the same product.
Since the beginning of the blend with biofuels, it was projected to steadily reach 10% ethanol content in oxygenated gasolines by 2020, and on this basis, the fuel quality standards were established.
However, due to climate variations, the national production of ethanol has fluctuated between 6 and 14 million gallons/month, generating a deficit that has sometimes forced the suspension of blending in some regions or reduced it to 6%.
In light of this situation regarding local supply, and in order to provide greater reliability in fuel supply, the Ministry of Mines and Energy decided to allow ethanol imports starting in May 2017. Since then, imports have served as a backup for national production, to the point that they made it possible to reach the blending percentage that was projected from the start of the program (10%).
Thanks to this opening, Colombians can now buy oxygenated gasoline E10, which is of better quality, higher octane, and less polluting. The savings in CO2 emissions from switching from consuming E6 and E8 gasolines to E10 has been around 500,000 tons per year. The benefits in fuel consumption have been evident.
AND IN THE PRODUCTIVE CHAIN?
The environmental benefit of biofuels is usually assessed comprehensively throughout their life cycle: from the cultivation of the raw material, production, transportation, blending with fossil fuel, and final consumption. For this reason, in the case of fuel alcohol, the Ministry of Environment and Sustainable Development established a limit on its carbon footprint since 2017. This added an environmental seal to the benefit obtained from the reduction of emissions in the consumption of biofuel. Today, both national and imported ethanol meet the requirement of a carbon footprint lower than 853 kg of CO2/m3.
On the other hand, imports have boosted more competitive prices for oxygenated gasoline, especially in the northern region (entirely supplied with this product).
For example, in cities like Barranquilla, where before 2017 prices at service stations were usually above the reference price, after the entry of imported ethanol, they began to be between 100 and 150 pesos per gallon below the reference.
All of this reaffirms that the government's decision to allow ethanol imports has resulted in benefits for end consumers of oxygenated gasoline, without conflicting with national production and, on the contrary, offering supply guarantees, stability, and improved fuel quality, reduced GHG emissions, and more competitive prices.
Undoubtedly, air quality should be a topic of reflection for Colombians and the different economic sectors, especially when this week we commemorate the Inter-American Day of Air Quality. The country must continue to advance in its improvement, and in that process, maintaining the blend of fossil fuel and biofuels is key, ensuring an increasingly competitive supply. The importation of ethanol and national production are called to complement each other, for the good of the country, the environment, and the citizens.
Colombian Association of Oil and Gas