Law 28054 (2003) established the general framework to promote the market development of biofuels based on free competition and free access to economic activity, aiming to:
- i) Diversify the fuel market,
- ii) Promote Agricultural and Agro-Industrial development,
- iii) Generate employment,
- iv) Reduce pollution,
- v) Provide an alternative market in the fight against drugs.
- promotes training and research on biofuel technologies;
- allocates specific funds to research centres of innovation; and
- starts the Program for Promotion of the Use of Biofuels (PROBIOCOM) to promote private investment in research and production of biofuels.
It also created the Biofuel Technical Commission responsible for proposing and recommending norms and complementary regulations for compliance with the Law.
The Supreme Decree No. 021-2007-EM (2007) sets the standards for blends of biofuels and their commercialisation. It also refers to the technical quality norms of Biofuels and regulations for the sale of biofuels.
- Since 2009, the use and commercialization of Diesel B2 (blend of 2% Biodiesel B100 and 98% Diesel No. 2), became mandatory across the country.
- In 2011, Diesel B2 was replaced by Diesel B5 (blend B100 Biodiesel 5% and 95% Diesel No. 2).
- Moreover, the Peruvian government ordered the compulsory use of gasohol, a blend of bioethanol (7.8%) and Gasoline (92.2%), from January 2010; it was gradually implemented nationwide.
The Ministry of Energy and Mines oversees the development of biofuels in Peru in many sectors. Only wholesale distributor companies and refinery operators effectively registered to the General Hydrocarbure Direction of the Mine and Energy Ministry are allowed to purchase, blend and commercialise both bioethanol and Biodiesel B100.