Brazil’s biodiesel production reached record levels from January to October 2023, averaging 20.2 million liters daily. This was an increase of 17% compared to the same period in 2022, according to data from Brazil’s . An increase in the biodiesel mandate from from April 2023 has boosted producers’ incentives for the supply and sales of this fuel. Results from the SGS Worldwide Fuel Survey indicate that the average biodiesel content in automotive (fossil diesel plus biodiesel) was 10.9% v/v between January and May 2023.
In addition, although it remains a marginal activity for Brazilian factories (between 1 and 2% of the total production), the export market is now developing more consistently. In 2023, Brazil was able to export commercially relevant volumes of biodiesel. According to Brazil's , about 99 million liters of biodiesel were exported from the country in January-November 2023, the maximum historical level. This doubles Brazil's previous 43 million liter record for biodiesel exports in 2022.
The regions that constitute the main destinations for biodiesel exports from Brazil are Europe and North America, with 73% and 25%, respectively, of the total volume during 2022-2023. In terms of countries, the Netherlands (64%) was the first destination of choice, followed by the U.S. (25%), Switzerland (9%), Peru (1%) and India (1%) during 2022-2023.
Despite this , on November 29, 2023, the ANP published which regulates the for use in the mandatory blend with fossil diesel, modifying from 2019 and from 2021. The measure eliminates the limitation on the marketing of imported biodiesel. However, the volume of biodiesel imported by each fuel distributor should be limited to 20% of the total volume for mandatory blending.
Production and consumption of biodiesel from 2013 to 2025
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Sources: SGS INSPIRE analysis based on data from the ANP and the U.S. Department of Agriculture (USDA), 2023
Biodiesel exports from Brazil from 2015 to 2025
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Source: SGS INSPIRE analysis based on data from the Ministry of Industry, Foreign Trade and Services of Brazil, 2023
Higher volumes of biodiesel blend, and a 5% increase in domestic fossil by Brazilian refineries, have reduced the total to Brazil by 13% in 2023 compared to 2022. This was despite an increase of 3% in January-October 2023 compared to the domestic diesel consumption in 2022. Agricultural production, which has exceeded expectations and achieved record harvests, heavily influenced this trend, according to Brazil’s Energy Research Company (EPE). In January-October 2023, around 21% of diesel consumption was imported.
SGS INSPIRE projects that Brazil's biodiesel production and consumption will increase by 16% in 2024, compared to 2023. An increase in the biodiesel mandate from 12% v/v to 13% v/v will continue incentivizing producers to supply and sell this fuel. Furthermore, SGS INSPIRE forecasts that biodiesel exports from Brazil are likely to increase by 21% in 2024 compared to 2023.
For more information about this issue, see the overview of and the overview of in Brazil.