Brazil has more recently begun to target the increased use of biodiesel fuels, derived primarily from domestically produced soybean oil, with recent legislation allowing for blends of 2% biodiesel in diesel fuels (B2), which may be increased to 5% (B5) in the near future if the market responds favorably. There is a real possibility of setting up a national biodiesel program similar in scope and magnitude to Proalcool. In 2003, Brazil consumed approximately 38 billion liters of diesel, and 6 billion liters were imported; a large biodiesel program could replace most of the imported diesel, while creating some 200,000 new jobs in rural areas [11]. Brazil has the potential to be a world leader in biodiesel production, as it will be able to produce bio-oil from many different sources.

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