Brazil is increasing its soybean processing capacity to keep up with the rising demand for biodiesel. The expansion is happening at nearly twice the pace of the past three years. This growth is fueled by the country’s new “Fuel of the Future” law, which requires the vegetable oil content in biodiesel to rise from 14% to 17% by 2027.
The new policy is expected to push soybean oil demand up by 34%. Biodiesel consumption is projected to increase from 9.3 billion litres in 2024 to 12.3 billion litres by 2027. Despite this sharp rise in local demand, Brazil’s soybean oil exports are expected to stay steady at about 1 million metric tons per year. This is lower than the five-year average of 1.8 million metric tons, reflecting a focus on meeting domestic needs.
For detailed information and further insights, please refer to BioEnergyTimes.com, which provides the latest news about the Biodiesel Industry