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Chilean Gas Crisis: Biofuel Perspectives

Categories: Latin America, Chile, Environment, Governance

Cold temperatures in Argentina this week decreased the supply of gas to Chile. Even though the Argentinean government declared that Chileans will be provided their regular supply of gas, Chileans are seeking other energetic alternatives to ensure the energetic supply for the country. This week, the Ministers of Economy, Energy, Agriculture and Revenue decided to release biofuels from a tax in order to promote their use.

Ecoperiodico [1] (ES) explains that this tax also applies to gasoline and diesel, and with this measure the prices of bioethanol and biodiesel will be a third of the price of one liter of gasoline.

Chile decidió el miércoles eximir a los biocombustibles de un impuesto específico que pagan las gasolinas y el diésel para fomentar su uso, en medio de preocupaciones por un menor suministro de gas natural desde Argentina, su único proveedor del recurso.

Chile decided this Wednesday to eliminate a specific tax on biofuel, that is also paid on gasoline and diesel in order to promote their use. This takes place in the middle of the concerns about the reduced supply of gas from Argentina, which is the only supplier of this resource.

The note continues explaining that Chile imports almost all of the fuel that it consumes, and this decision will help reduce the fluctuations in fuel prices and gas supply. One of the most affected areas is the northern part of the country. One of the projects that is concerned for this area is from the Ministry of Interior. The Interior Minister, posted on his blog [2] (ES) an agreement with the University of Tarapacá to develop the crop “Jatropha” on 1,500 hectares. Jatropha is a shrub that is used in Europe and the Middle East to generate biofuel.

Also in regards to biofuels, but not related to the energy crisis, Atinabiotec [3] (ES), which is a blog that publishes biotechnology-related news, posts the results of The Insurance Society Co-op, which warns about the dangers for the environment due to the use of biofuels. One of the issues is that the use of biofuels can help reduce the greenhouse effect, but on the other hand, it can also increase the use of agriculture land for biofuel plantations. This could decrease the amount of available lands for agriculture in countries that still have famine.

Local newspapers and television said that the gas for domestic use will be supplied. The most serious situation is for the companies that must find other sources of fuel in order to operate.