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 18%.
This growth is attributed to a larger diesel pool and a higher blend mandate. The Brazilian government has raised the biodiesel blend mandate from 12% to 14%, effective March 1, 2024, with B15 blending scheduled to begin in 2025.
The report indicates that Brazil currently operates 62 biodiesel plants, an increase from 61 in 2023 and 57 in 2022. The total capacity for 2024 is estimated at 14.89 billion gallons (3.93 billion liters) per year, up from 14.378 billion gallons last year and 13.66 billion gallons in 2022. Capacity utilization is expected to reach 55% in 2024, compared to 52% in 2023 and 50% in 2022.
Brazil is projected to produce 8.9 billion liters of biodiesel this year, an increase from 7.53 billion liters in 2023 and 6.77 billion liters in 2022.
The country imports and exports very little biodiesel. Total imports are expected to remain at 2 million liters this year, unchanged from the previous three years. Exports are projected to reach 4 million liters, consistent with 2023 but down from 5 million liters exported 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, up from 11.4% last year and 10.7% in 2022.
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