USDA Forecasts Brazilian Biodiesel Output this Year to Exceed 7 Billion Liters

Brazil, the world’s third largest producer and consumer of biodiesel next to Indonesia and the USA is forecasts to produce 7.1 billion liters of biodiesel this year, the US Department of Agriculture (USDA) reported.  If realized, production would rise 5% from the previous year of 6.77 billion liters, the USDA’s Foreign Agricultural Service (FAS)’s Brazil: Biofuels Annual said. 

In March, the Brazilian government announced an increase to the biodiesel blending rate from 10% to 12%, which took effect starting April 01. At that time of the announcement, the government also said that there would be further increases in the blending rate to reach 15% in 2026, the Global Agricultural Information Network (GAIN) report said. 

The authorized industrial capacity for 2023 was estimated at 38.6 million liters/day of biodiesel or 14.1 billion liters per year, based on 360 days operation cycle, an increase of 3.2% over 2022 of 14 billion liters.  Of last year’s production, the Brazilian National Agency for Petroleum, Natural Gas and Biofuels (ANP) data showed that about 65.8% was produced from soybean oil and 16.2% from greasy materials, with the remaining feedstock comprising animal fat (7.9%) and palm oil (2.1%).  In addition, 8% of the total was produced from other fatty materials such as different raw materials blended in tanks and co-products from biodiesel production.  As of the first six months of this year, 68.3% of biodiesel produced was derived from soybean oil, 6.8% from tallow, 2.3% from palm oil, 15% greasy materials and 7.5% other raw materials.