Brazilian biodiesel production is projected to rise by 18% this year, according to a report submitted to the USDA Foreign Agricultural Service’s Global Agricultural Information Network on August 31. Consumption is also anticipated to increase by the same percentage.
This growth is largely attributed to an expanding diesel market and a heightened blend mandate. The Brazilian government recently raised the biodiesel blend requirement from 12% to 14%, effective March 1, 2024, with plans to introduce B15 blending in 2025.
The report highlights that Brazil currently operates 62 biodiesel plants, an increase from 61 in 2023 and 57 in 2022. The total production capacity for 2024 is estimated at 14.89 billion liters, up from 14.378 billion liters last year and 13.66 billion liters in 2022. Capacity utilization is expected to hit 55% in 2024, compared to 52% in 2023 and 50% in 2022.
Brazil is set to produce 8.9 billion liters of biodiesel this year, a significant rise from 7.53 billion liters in 2023 and 6.77 billion liters in 2022.
The country imports and exports minimal amounts of biodiesel, with total imports anticipated to reach 2 million liters this year, consistent with the previous three years. Exports are projected at 4 million liters, unchanged from 2023 but down from 5 million liters in 2022.
Soybean oil remains the primary feedstock for biodiesel in Brazil, followed by animal fat, palm oil, and used cooking oil.
The overall biodiesel blend rate in Brazil is expected to reach 13.2% in 2024, an increase from 11.4% last year and 10.7% in 2022.
