In Washington, U.S. and Canadian biofuel producers, concerned about the impact on trade of President Donald Trump’s waffling on tariffs, have cut back production to avoid future border problems, Reuters reported. Some analysts expect a “painful” contraction in both biodiesel and renewable diesel production, not only because of the tariffs but also because of the Biden administration’s elimination of subsidies for blended fuels.
The Philippine government’s plan to increase the biodiesel blend in diesel fuel presents a significant opportunity for growth in the biodiesel market. Starting from October 1, the mandated blend will increase from 3% to 4%, with further increases to 5% by October 2026. To meet this rising demand, D&L Industries, through its subsidiary Chemrez Technologies Inc. (CTI), is considering building a second biodiesel plant.
D&L Industries confirmed that it is in the final stages of evaluating the risks and rewards of this expansion. The company has sufficient financial flexibility following the completion of its Batangas plant and expects the new plant’s capital expenditure to be lower. However, any large-scale investment would require shareholder approval. D&L believes that increasing biodiesel production will boost agricultural and manufacturing investment, create jobs, and improve environmental sustainability, while reducing the Philippines’ reliance on imported fossil fuels and enhancing energy security.
The recent proposal to pause the mandatory 90-day blending of biodiesel with fossil diesel is a major setback for Brazil, both economically and environmentally. This measure not only threatens the sustainability of the biodiesel industry but also puts thousands of jobs at risk and impacts the income of family farmers dependent on this production chain.
The biodiesel industry is a vital pillar for job creation and economic growth. In 2022, a survey conducted by the Esalq/USP Applied Economics Research Center (Cepea) and the Brazilian Vegetable Oil Industry Association (Abiove) found that the soybean and biodiesel sectors created 2.05 million jobs, representing 10.8% of total agricultural employment in Brazil. This marks an 80% increase in employment compared to 2012 when the first report in this series was published. Suspending the mandatory blending would directly affect these jobs, leading to widespread unemployment and severe negative impacts on several regional economies.
Additionally, removing biodiesel from fossil diesel would significantly raise greenhouse gas emissions. It is estimated that the suspension could increase carbon dioxide emissions by 4.5 million tons, further intensifying the climate crisis.
Biodiesel prices in Brazil had fallen nearly 7% this year as of early March, according to regulator ANP. Due to a record soybean harvest and a drop in the international price of soybean oil, the main raw material for biofuels, the market expects that prices could go further down.
Experts also point out that the biodiesel blend in Brazilian diesel fuel is currently maintained at 14%. According to the original plan, this proportion should be increased to 15% from the beginning of March, but due to inflationary pressures, the Brazilian government decided not to adjust the blend ratio.
The average price of biodiesel in Brazil has fallen to R$5.797 per liter, reaching its lowest level since the end of October 2024, according to a survey released this week by ANP. This compares with a price that hovered near a nearly three-year high last year.
Gianni Murano, Chairman of the Italian Union for Mobility Energy (UNEM), stated that although the European Commission’s position on biofuels is still unclear, the Italian government has repeatedly called for an accelerated revision of vehicle emission standards, hoping to eventually open the use of biofuels and reduce carbon emissions through various technologies. Global demand and production of biofuels continue to grow, and Finnish company Neste estimates that by 2030, Europe’s demand for renewable diesel will reach 11 million tons, double the 4 million tons in 2023.
According to UNEM data, global biofuel production has increased by 44% since 2015, with Europe being the dominant region. Germany, France, Spain, and Italy are the largest producers. Italy has shown strong potential in renewable fuel supply, particularly in the availability of raw materials such as agricultural waste and used cooking oil, attracting significant investments in sustainable production. Italian company Adamant Group is driving the development of factories designed for advanced biofuels and circular economy projects and plays a key role in marine and aviation fuel production.
In 2024, Italy’s biofuel production is approximately 1.2 million tons, remaining stable compared to 2023. Eni is the largest player in Italy’s biofuel sector, with its subsidiary Enilive producing 1.65 million tons of bio-refined oil annually. The Marghera refinery can produce 400,000 tons of Hydrotreated Vegetable Oil (HVO) annually, and the Gela refinery produces 736,000 tons of HVO, with plans to produce Sustainable Aviation Fuel (SAF) by 2025. Additionally, the Italian company Hera has partnered with several catering giants to collect used cooking oil and convert it into biofuels. By 2028, it plans to increase its collection to 8,000 tons per year.
Dan-Bunkering, a leading global bunker supplier, announced on March 18th that it has successfully completed a biofuel fill for its customer, Danish dry bulk owner and operator Union Bulk. This was Union Bulk’s first biofuel fill on March 9 for its vessel Blue Union Alpha.
The refueling was coordinated by Dan-Bunkering to meet the demand for specific fuel types on international routes. In a ship-to-ship operation, 300 metric tons of B24 Very Low Sulfur Fuel Oil (VLSFO) was added to Blue Union Alpha to enable it to successfully complete its voyage to Europe while complying with the regulatory requirements of the European Union’s FuelEU maritime and emissions trading system.
The addition of B24 VLSFO was critical to meeting EU emissions regulations before departing Singapore for the EU. The use of alternative fuels, such as biofuels, is one of the easiest ways to comply with FuelEU requirements and reduce emissions.
A coalition of eight organizations recently sent a letter to the House Committee on Fundraising urging Congress to extend the Section 40A Biodiesel Blender Tax Credit.
The Biodiesel Blender Tax Credit provides a $1 per gallon tax credit for the purchase of biofuels. It was introduced in 2004 and expired last year.
The biodiesel tax credit expires at the end of 2024, which has hit the biofuels supply chain hard. Many biofuel production facilities, especially biodiesel plants, have been downsized or closed altogether.
Organizations that signed the letter include the American Trucking Associations, the Clean Freight Coalition, the American Energy Marketers Association, the National Association of Convenience Stores, the National Association of Truckstop Operators, the National Institute of Energy and Fuels, SIGMA, the nation’s leading fuel marketer, and the Trucking Associations.
On Wednesday, March 12, the Brazilian Union of Fuel and Lubricant Distribution Companies (Sindicom) submitted a request to the National Agency for Oil, Gas and Biofuels (ANP) to temporarily suspend the obligation to blend 14% of biodiesel in diesel fuel for a period of up to 90 days.Sindicom argues that the recent higher price of biodiesel compared to petroleum-based diesel fuel has led to fraudulent blending practices and that increased regulation is necessary. Sindicom argues that the recent higher price of biodiesel than petroleum-based diesel has led to fraudulent blending practices, hence the need for tighter regulation.
However, the Parliamentary Front for Biodiesel (FPBio) strongly opposed the proposal, calling it an attempt by distributors to “phase out” biodiesel, which could have a serious impact on the production sector. FPBio pointed out that the suspension of blending would result in 10 million tons of soybeans not being sold in the market, which would in turn reduce the supply of soybean meal by 8 million tons and push up feed prices, triggering inflation. The suspension of blending would result in 10 million tons of soybeans not being sold in the market, which would reduce the supply of soybean meal by 8 million tons, pushing up feed prices and causing inflation.
The Bolivian government has taken a key step in the industrialization of energy with the final stages of construction of the biodiesel plant II “Héroes de Senkata”, in which the state-owned YPFB is investing more than $66 million. Located in the Senkata area of El Alto, the plant, with a capacity of 1,500 barrels per day, will reduce dependence on imported diesel and contribute to the country’s energy security.
The project will utilize 98% vegetable oil and 2% waste cooking oil to produce biodiesel, promoting a circular economy and reducing environmental impact. This initiative demonstrates Bolivia’s strong commitment to promoting the energy transition and diversifying fuels.
According to a March 4 announcement by the German Union for the Promotion of Oilseeds and Protein Plants (UFOP), Germany’s biodiesel-to-diesel blending ratio fell to an all-time low in November 2023, at 3.9 percent. This ratio has not been this low since the blending obligation was introduced in 2009.
According to the latest statistics released by the German Federal Office for Economics and Export Control (BAFA), the actual biodiesel blend was only 106,900 metric tons.
Furthermore, for the first time, total German biodiesel and renewable diesel consumption fell below 2 million metric tons between January and November 2023.
However, it is worth noting that in the 2024 quota year, the biodiesel blend reached its highest level of 8.5% in March.