Law on biofuels

Source: JOIN IEA/IRENA Policy and Measures Database
Last updated: 21 April 2016

The law promotes and regulates the production, commercialization and the use of biofuels. It also aims to reduce emissions of greenhouse gases under the terms of the Kyoto Protocol. It mandates a 5% bioethanol blend after 2015 and 5% biodiesel blend starting in 2012. The mandates must be fulfilled with locally produced biofuels, although the government can allow exceptions for national interest.
Biofuel producers can choose to supply the public national fuel company (ANCAP) or to export to the international markets, though the government can limit export of biofuels to ensure that local demand is met. Biodiesel producers are also allowed to use up to 4000 liters per day for self-consumption. This law provides biofuel producers with fiscal incentives, including property and income tax exemption for ten years. In addition, biodiesel produced in Uruguay is exempted from a fuel specific tax (IMESI) for ten years from the publication of this law.

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