Strong biodiesel demand will expand Brazil’s refining capacity by another 8%
Brazilian soybean crushers will invest more than $1.11 billion (5.9 billion reais) in capacity development over the next year due to growing demand for biodiesel, Reuters reports.
By 2025, the number of soybean crushing companies in Brazil will increase from 67 to 75, and the number of plants will increase from 132 to 144. Currently, unused crushing capacity in the industry stands at 3.87 million tons per year, while in 2024 it reached 4.7 million tons. However, Bunge, ADM, and Cargill are seeking to increase refining capacity in Brazil to produce more biodiesel, as the country’s government plans to achieve a blending rate of biodiesel with diesel of up to 15%, a rate expected to continue to increase.
According to ANP, approximately 75% of the country’s biodiesel is produced from soybeans. Analysts note that the investment will increase the country’s refining capacity by 8%, to more than 80 million tons of fuel per year.
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