China’s biomass-based diesel imports are expected to increase 40 percent this year. The country’s exports of biomass-based diesel fuels are also surging, according to a report filed with the USDA Foreign Agricultural Service’s Global Agricultural Information Network. 

According to the report, the export of used cooking oil (UCO)-based biodiesel and hydrogenation-derived renewable diesel (HDRD) were up significantly during the first half of this year due to robust demand from the European Union. Capacity for biodiesel plants has held relatively steady at 3.7 billion liters per year (977.44 million gallons). Export-oriented HDRD plants are seeking notable expansion, however, with a 3 billion gallons of capacity expected to be online by the end of 2023 and an additional 1.2 billion liters of capacity planned. 

The report shows that China is expected to have 48 biodiesel plants in place by the end of 2023 with a combined 3.7 billion liters of capacity, up from 46 plants with a combined 3.5 billion liters of capacity in 2022 and 44 plants with a combined 3.3 billion liters of capacity in 2021. Capacity utilization is expected to reach 51 percent this year, up from 43 percent last year and 37 percent in 2021. 

China is also expected to have HDRD facilities in place by the end of this year, with a combined 3 billion liters of capacity, up from 11 facilities in 2022 with 2 billion liters of capacity and nine facilities in 2021 with 1 billion liters of capacity. Capacity use is expected to be 47 percent this year, a level of use maintained from 2022. Capacity use was at 62 percent in 2021.

Approximately 1.815 million metric tons of UCO is expected to go to biodiesel production this year, up from 1.42 million metric tons in 2022 and 1.16 million metric tons in 2021. UCO is also used to produce HDRD, with 1.31 million metric tons expected to be consumed this year, up from 880,000 metric tons in 2022 and 580,000 metric tons in 2021.

Total production of biodiesel and HDRD is expected to reach 3.3 billion liters in 2023, up from 2.43 billion liters in 2022 and 1.834 billion liters in 2021. Domestic consumption is forecast to reach 850 million liters this year, up from 734 million liters in 2022 and 564 million liters in 2021.

China is expected to import 500 million liters of biobased diesel fuels this year, up from 358 million liters in 2022 and 204 million liters in 2021. Exports are expected to reach 2.95 billion liters, including 1.32 billion liters of HDRD. Exports were at 2.054 billion liters, including 900 million liters of HDRD, in 2022, and at 1.475 billion liters, including 600 million liters of HDRD, in 2021.

A full copy of the report is available on the USDA FAS GAIN website.