State of the Argentine biodiesel industry - First Semester 2009 Report: International production rankings, increasing production levels, and ongoing international commercial disputes

Sep 2009

The global biodiesel industry continues to evolve rapidly. European production seems to be shifting towards Eastern Europe (closer to its feedstock, rapeseed/canola); the U.S. industry appears headed to a contraction of as much as 40% this year and likely to drop in world rankings from second to perhaps fourth largest producer. Meanwhile, Latin American production continues to grow: Brazil has emerged as the fourth largest producer before even beginning to consider export markets; Colombia’s production is exploding this year and may well appear among the world’s ten largest producers for the year; and Argentina’s production has returned to stability and is producing solidly once again. About a third of its production will be re-directed to the domestic market in 2010, but this is unlikely to significantly change the fortunes of the seriously over-built European industry.
But at the same time one can see the beginnings of a massive shift toward second and third generation biodiesel, which will undoubtedly affect Argentina and its strong natural advantage in first generation oils. Each country continues to organize and produce according to its capacities and competitive advantages, and one of the big news in this report is the revelation that Brazil has surpassed Argentina in biodiesel production, using the credibility, consistency, and ability for teamwork that they have already established in their very powerful sugarcane based ethanol industry. Argentina is slowly getting organized for the legally-mandated B5 requirement that begins in January 2010.

By: Camara Argentina de Energias Renovables

download this document:   402 kb