Brazil's Biodiesel Production Projected to Increase by 18% in 2024

Brazil’s biodiesel production is expected to see an 18% increase in 2024, as outlined in a recent report from the USDA Foreign Agricultural Service’s Global Agricultural Information Network, released on August 31. This growth is attributed to a combination of an expanding diesel market and a rise in the biodiesel blending mandate implemented by the Brazilian government. Effective March 1, 2024, the government has raised the mandatory biodiesel blend from 12% to 14%, with plans to introduce a 15% blend (B15) by 2025, further driving demand for biodiesel in the country.

Brazil's biodiesel industry continues to expand its production capabilities. The report indicates that the country now operates 62 biodiesel plants, a slight increase from 61 in 2023 and 57 in 2022. The combined production capacity of these facilities is estimated at 14.89 billion liters (3.93 billion gallons) per year, reflecting steady growth from 14.378 billion liters in 2023 and 13.66 billion liters in 2022. The capacity utilization rate is also set to rise to 55% in 2024, compared to 52% in 2023 and 50% in 2022, signaling improved efficiency and a growing ability to meet the increasing demand.

In terms of actual production volume, Brazil is forecast to produce 8.9 billion liters of biodiesel in 2024. This represents a substantial increase from 7.53 billion liters in 2023 and 6.77 billion liters in 2022, highlighting the ongoing expansion of the industry. Despite the rise in domestic production, Brazil's biodiesel trade remains relatively modest. Biodiesel imports are projected to remain unchanged at 2 million liters, consistent with the previous three years. On the export front, the country is expected to ship 4 million liters of biodiesel in 2024, maintaining the same level as 2023 but slightly lower than the 5 million liters exported in 2022.

The primary feedstock for Brazil's biodiesel production continues to be soybean oil, followed by animal fats, palm oil, and used cooking oil. This diverse feedstock base supports the country’s efforts to increase production and meet growing domestic demand. The total biodiesel blend rate in Brazil is anticipated to reach 13.2% in 2024, up from 11.4% in 2023 and 10.7% in 2022, reflecting the government's push to incorporate more biodiesel into the fuel supply chain.

The projected increase in both production and consumption demonstrates Brazil’s commitment to its biofuel mandates, aiming to reduce its reliance on fossil fuels and advance its sustainability goals. The continued growth in the biodiesel sector is a crucial part of Brazil's broader renewable energy strategy, supporting the country's transition to a more sustainable energy future.