China’s biodiesel production in 2022 is expected to increase by 32 percent when compared to 2021 due primarily to a surge in export demand, according to a report filed with the USDA Foreign Agricultural Service’s Global Agricultural Information Network. Domestic ethanol blend rates, however, remain limited with no mandates beyond one municipal B5 program.

China currently has 46 biodiesel plants, up from 44 in 2021 and 42 in 2020. Nameplate capacity is expected to reach 4.7 billion liters (1.24 billion gallons) this year, up from 2.8 billion liters in 2021 and 2.726 billion liters in 2020. Capacity utilization is expected to fall to 51.7 percent in 2022, down from 65.5 percent in 2021 and 53.4 percent in 2020.

An estimated 2.381 million metric tons of used cooking oil is expected to be used as feedstock for biodiesel production this year, up from 1.798 million metric tons in 2021 and 1.426 million metric tons in 2020.

Producers in China are expected to manufacture 2.43 billion liters of biodiesel this year, up from 1.835 billion liters in 2021 and 1.455 billion liters in 2020. Consumption is expected to reach 600 million liters in 2022, up from 564 million liters last year and 522 million liters in 2020.

China is expected to export 2.125 billion liters of biodiesel this year, up from 1.835 billion liters in 2021 and 1.455 billion liters in 2020. Nearly all of 2022 biodiesel exports are expected to be destined for the European Union.

China is expected to import 295 million liters of biodiesel this year, up from 204 million liters last year and 102 million liters in 2020.

A full copy of the report can be downloaded from the USDA FAS GAIN website.