In this article, we take a look at the 5 largest biodiesel producers in the world. If you want to take a look at our detailed analysis of the biodiesel industry, you can check out the 15 largest biodiesel producers in the world.
5. China
Biodiesel production in 2022: 634 million gallons (Estimated)
China has worked to drive up its biodiesel production in 2022 from its 2021 capacity of 475 million gallons. The country has also managed to develop a highly profitable biodiesel export industry, with prices rising to over $1,723 per ton in 2023. The demand for low-carbon development in the rest of the world has fueled this increase in the Chinese export industry. By the end of 2022, China had also mandated that all fuel for the transport industry must have at least a 20% biodiesel component.
4. Germany
Biodiesel production in 2022: 1 billion gallons (Estimated)
Germany is the EU’s largest producer of biodiesel, single-handedly contributing a massive number to the region’s total production capacity for this fuel. Almost half of Germany’s rapeseed crop is currently used for biodiesel production, which amounted to 4 million tons in 2022. However, the German government plans to phase out the production of biodiesel from plant-based oils by 2030 and instead switch entirely to using garbage, waste, and used edible oil. This policy change will have a significant impact on the agricultural industry as well as the import environment of the country.
3. Brazil
Biodiesel production in 2022: 1.68 billion gallons (Estimated)
Despite landing third on the list of the largest biodiesel producers in the world, Brazil’s biodiesel production capacity actually decreased in the year 2022. The country currently has 57 biodiesel refineries, which combine to produce over a billion-gallon supply of biodiesel. Soybean oil is used as the main source of biodiesel, followed by animal fat, palm oil, and used cooking oil. Brazil has also raised its blending mandate to 12% in 2023 from the previous 10% limit that had been set. The country plans to progressively raise these amounts, eventually set to achieve a 15% blend by 2026.
2. USA
Biodiesel production in 2022: 2.3 billion gallons
The USA formulates a significant chunk of the global biodiesel consumption. This is precisely why many would expect it to be the largest biodiesel producer in the world, but it comes second by a considerable margin. After Renewable Energy Group, the US biodiesel market is dominated by massive private players such as Cargill Inc. and RBF Port Neches LLC. Currently, the US has around 72 biodiesel production facilities, most of which are concentrated in the eastern half and the far west. Other companies like Archer-Daniels-Midland Co (NYSE:ADM) might be a little down in the list, but they still contribute considerable profits to the US economy.
1. Indonesia
Biodiesel production in 2022: 4.7 billion gallons
Coming as a surprise to many, Indonesia bags the first spot in the list of the largest biodiesel producers in the world. The country is conducting significant testing in the biodiesel industry, hoping to launch new alternatives and blends for commercial use by the general public. By 2030, its predicted that the country’s use of palm oil for the production of biodiesel will increase to 23%.
UN FAO has also indicated in its annual report that in the coming decade, Indonesia will emerge as the main driver behind the increased use of vegetable oil for biodiesel production. The country is currently the world’s largest producer and exporter of the oil and has a 30% blend mandate for palm oil biodiesel. This helps Indonesia not only lower fuel imports but also boost domestic palm oil production.
Disclosure: None. You can also check out Top 20 Most Profitable Energy Companies in the World and 12 Best Algae and Biofuel Stocks To Buy.
