Brazilian biodiesel production, use expected to increase in 2023
September 11, 2023
BY Erin Voegele
Biodiesel production in Brazil is expected to increase approximately 5 percent this year, with consumption up an estimated 6 percent, according to a report filed with the USDA Foreign Agricultural Service’s Global Agricultural Information Network.
Brazil earlier this year increased its biodiesel mandate from 10 percent to 12 percent and has indicated plans to move to a B15 mandate by 2026.
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The country currently has an estimated 59 biodiesel plants, up from 57 in 2022 and 50 in 2021. Total nameplate capacity is approximately 15.2 billion liters (4.02 billion gallons), up from 13.66 billion liters in 2022 and 11.19 billion liters in 2021. Capacity use is expected at 66 percent this year, compared to 50 percent last year and 61 percent in 2021.
Domestic biodiesel production in Brazil is expected to reach 7.1 billion liters this year, up from 6.765 billion liters in 2022 and 6.87 billion liters in 2021. Biodiesel consumption is forecasted at 7.15 billion liters, compared to 6.75 billion liters last year and 6.928 billion liters in 2021. The country has not imported or exported any biodiesel over the past decade, according to the report.
Soybean oil is the primary feedstock used to production biodiesel in Brazil, at an estimated 4.3 million metric tons this year, followed by used cooking oil at 1.05 million metric tons, animal fat or tallow at 500,000 metric tons, and palm oil at 140,000 metric tons. An additional 520,000 metric tons of feedstock classified as “other” is expected to be consumed by Brazilian biodiesel producers this year.
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The overall blend rate for biodiesel is expected to reach 11 percent this year, compared to 10.7 percent last year and 11.2 percent in 2021.
A full copy of the report is available on the USDA FAS GAIN website.
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