Thailand Biodiesel Production and Consumption Forecast to Rise 22% in 2026

Thailand’s biodiesel production and consumption are forecast to increase by 22% in 2026 compared with 2025, driven by higher blending mandates and government incentives. In March 2026, the country raised its biodiesel blending requirement from B5 to B7 to reduce dependence on imported petroleum and strengthen domestic palm oil demand.

Palm oil remains the primary feedstock for biodiesel production. The government has introduced export controls to ensure sufficient domestic supplies while encouraging investment in new production capacity. A planned biodiesel plant in Chonburi, with an annual capacity of 300,000 metric tons, is expected to further support industry expansion.

The policy shift is expected to strengthen Thailand’s domestic biofuel market and reinforce the link between its palm oil and renewable energy sectors.