Argentina has a federal biofuel production base and maintains a prominent track record in the international market. In the case of soy-based biodiesel, the country is the third world producer,with much of the production concentrated in Santa Fe and the province of Buenos Aires. In turn, the bioethanol, which is entirely destined for the domestic market, is mainly concentrated in Cordoba (39% of production, from corn) and Tucuman (31%, from sugar cane), according to official sources, taking advantage of the productive strengths of each province.
In this framework, on Tuesday (30.09.2025), different chambers of the industrial and oil sector presented before the Senate's Industry and Commerce Commission on the profitability and competitiveness of the sector and requested the approval of the new biofuels bill, which replaces Law 27.640, the current Biofuels Regulatory Framework passed in 2021.
The biodiesel and oil industries highlighted the challenges facing value-added at source and called for a legal framework that would allow for increased production in our country.
Gustavo Idígoras (Ciara-CEC) He emphasized that Santa Fe has the largest number of plants in the country, although currently only 10% of the installed capacity is active due to legal restrictions that arbitrarily set prices and limit sales to the domestic market.The current law does not allow industrialization, adding value or generating employment.", he pointed.
The head of CIARA-CEC added that "Countries like Brazil and the United States have managed to boost production through progressive policies that encourage mandatory biofuel blending, while Argentina remains behind.". He highlighted that, 58 countries in the world have similar legislation, but none of them apply restrictions like the current Argentine law.
Amongst the objectives of the new regulations, the businessmen stressed:
- Gradually increase the mandatory biofuel mix, following successful models such as those in Brazil and Indonesia.
- Allowing the participation of companies of all sizes, from SMEs to multinationals, with national and international technology.
- Position Argentina in global biofuel markets, including aeronautical and maritime uses, anticipating international emissions regulations.
- Improve competitiveness, added value, and the income of industry workers.
"If we do not update the law, Argentina runs the risk of importing biofuels while our productive potential remains idle.", warned Idígoras. Therefore, the national representatives —Javier Patino, member of RIA Consultores; Víctor Castro, executive director of CARBIO; and Axel Boerr, president of CAPBA— agreed on the need to approve a legal framework that encourages industrialization, investment, and expansion of the sector, taking advantage of the growing global demand for biofuels and positioning Argentina as a competitive supplier in strategic international markets.
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