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To cement the announcement, Lula was present at the inauguration ceremony of the first biodiesel facility in the northern area of Brazil, an 8-million-litre capacity plant in the city of Belem.
"Biodiesel production is a way of making Brazil less dependent on oil, a fuel that may eventually come to an end. This is a vital project for insuring more independence for Brazil, as we may become a large biodiesel exporter," he said.
The Brazilian Government currents legislates that 2% of biodiesel is mixed with conventional diesel but has said this will rise to 5% by 2013.
