With an installed capacity of 15.6 million cubic meters used at only 63.2%, biodiesel still has enormous room to grow, and the consumption of soybean oil as a raw material has already reached 7.9 million tons, concentrating more than 70% of production in the Midwest and South
Every time a truck refuels in Brazil, part of what goes into the tank came from a soybean field. And this share hit a record in 2025. According to BiodieselBR, in a report from February 3, 2026, Brazilian plants produced just under 9.84 million cubic meters of biodiesel throughout 2025, with an increase of 8.6% over the 9 million of 2024. It is the largest volume ever produced in the country.
And this volume turned into big money. According to BiodieselBR, the plants sold 9.6 million cubic meters on the domestic market, earning revenues exceeding 55 billion reais. It is an entire industry that was born in the wake of a blending rule.
The rule that pushed biodiesel to the record
The engine of this growth was not the market, it was the law. According to Agência iNFRA, in a report from January 15, 2026, with data from StoneX consultancy, the country started operating with the B15 mandate from August 2025, which increased demand for biofuel and consolidated the sector’s growth recovery after years of instability. Five months of the new rule were enough to turn the year.
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It’s worth explaining what this B15 means. It is the mandatory proportion of biofuel mixed with regular diesel sold at every pump in the country, and each additional percentage point in this blend means hundreds of millions of liters more of guaranteed demand per year, without the plant needing to convince a single customer.
How much soy biodiesel consumes
The main raw material comes directly from the field. According to Agência iNFRA, the increase in the blending rate resulted in higher consumption of soybean oil, the main raw material for biodiesel, which totaled about 7.9 million tons throughout the year. It is soy that did not become meal nor was shipped to China, but rather Brazilian fuel.
And production is concentrated where the soy is. According to Agência iNFRA, the sector’s installed capacity reached 42.6 thousand cubic meters per day in 2025, with a strong concentration in the Midwest and South regions, responsible for more than 70% of national production. The plant is located next to the field, not the consumer.
This geography has direct economic logic. Transporting grain or oil for thousands of kilometers to the industrial plant would be expensive, so the plants are installed in the middle of production, where the input arrives by truck in a few hours. It’s the same reasoning that led the corn ethanol plant to the Midwest.
How Much Biodiesel Can Still Grow
The most revealing data of the balance is the idleness of the park. According to BiodieselBR, the installed capacity at the end of 2025 was 15.6 million cubic meters, with a utilization rate of only 63.2%. More than a third of the factories are idle waiting for demand.
And this capacity continues to be expanded. According to BiodieselBR, the sector grew by 690 thousand cubic meters in capacity, or 4.6%, between 2024 and 2025. The plants continue to invest even with a large part of the park idle.
This behavior of the plants only makes sense because of the blending rule. Since the mandatory percentage rises by government decision, the plant with ready capacity captures the new demand on the day the mandate increases, while those who did not invest are left out. It’s a race for position, not for customers.
What the Biodiesel Sector Expects from 2026
The projection for the following year is for more growth. According to Agência iNFRA, StoneX projects that the demand for biodiesel could reach 10.5 million tons if B15 is maintained throughout the year, and in a scenario of increasing the blend to B16 from March, consumption could exceed 11 million cubic meters. One percentage point in the rule moves half a billion liters.
And the long-term horizon is already written. According to Agência iNFRA, the sector’s goal is to reach B20 by 2030. It’s double the blend that existed a few years ago, and more guaranteed demand for the plants.
The sector also exports, albeit little. According to BiodieselBR, 94 thousand cubic meters were exported in 2025, generating an additional 590 million reais in revenue. It’s less than 1% of production, which shows that Brazilian biodiesel is, in practice, a product for domestic consumption.
What the Biodiesel Record Means
In the end, the numbers from 2025 show an industry that grows by regulatory decision and by abundant harvest at the same time. With almost 9.84 million cubic meters produced, an increase of 8.6%, more than 55 billion reais in domestic revenue, 7.9 million tons of soybean oil consumed, and a park used at only 63.2%, Brazil’s biodiesel production has room to grow much more. As the blend increases, the plant fills up. Tell us in the comments: did you know that 15% of the diesel in your tank came from soy?
