Jun 01, 2026
Biodiesel Groups in Brazil Demand Quicker Government Action
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
The biodiesel sector in Brazil is frustrated with the slow pace of government approval to increase the biodiesel mixture from the current B15 to B16. Currently, the federal government advocates conducting B20 testing before authorizing further increases in the mix according to the Fuel LaAw of the Future. The B20 tests are not scheduled to be completed until early 2027. Any increase in the mixture needs the approval of the National Council of Energy Policy (CNPE) and proof of technical feasibility.
Abiove (the Brazilian Association of Vegetable Oil Industries) contends that the government is misreading the law and that increasing the mixture to B16 can move forward without B20 testing. Brazil's biodiesel sector already has more than enough capacity to meet the demand for a B20 mixture.
In fact, Jerome Goergen, President of APROBIO, indicated that Brazil could already produce a B22 mixture making Brazil self-sufficient in diesel production. He contends that postponing the increase could compromise planned investments in both the soybean crushing industry and biodiesel production.
Brazil only processes a third of the soybeans it produces, and it has the capacity to process an additional 7 million tons, which would be more than enough to meet a B20 demand.
According to a survey cited by Abiove, each ton of processed soybeans generates R$ 7,608 in Gross Domestic Product, a value more than four times higher than that obtained with the export of soybeans.