In this article, we take a look at the 15 largest biodiesel producers in the world. You can skip our detailed analysis of the biodiesel industry and go directly to the 5 Largest Biodiesel Producers in the World.
The need for alternative fuels has contributed massively to the growth of the biodiesel industry. In 2022, the industry had a market size of $36.48 billion, predicted to grow to $79.12 billion by 2032, showcasing a CAGR of 8.1%, according to Precedence Research. The fuel sector alone contributed 79% of the total revenue, demonstrating how the transportation industry has been revolutionized with the advent of biodiesel.
Out of all the sources that go into the production of this compound, vegetable oils made up 96.4% in 2022. The market is only expected to grow from here as the demand for biofuels replaces conventional fossil fuels, which are constantly being advocated against by environmental activists, and rightfully so. Not only is this type of fuel biodegradable, but it is also much more compatible with modern engines, which has led to its increased demand, specifically in the transport industry.
Half of the market’s growth can be attributed to the demand for fuels that emit lower greenhouse gases, whereas the other half can be credited to increased government incentives and subsidies. Even though the automotive industry is growing more accustomed to biodiesel, that does not mean that the industry isn’t facing challenges of its own. Currently, the biggest hurdle for the biodiesel industry turns out to be its cost. The production costs for biodiesel are mainly determined by the expenses for feedstock oils, which are highly volatile.
Currently, biodiesel sells a whopping 130% more expensive than fossil fuels, which is a barrier that needs to be crossed. The way out seems to be through government subsidies, which are currently upholding the industry. The most significant opportunity for the biodiesel industry’s growth is the depletion of fossil fuels, for which there is no other alternative yet. That, paired with the environmental benefits of the fuel and its compatibility with modern engines, will contribute significantly to the market in the coming years.
Globally speaking, the EU is collectively the largest consumer of the market, but country-wise, it is the US. Renewable Energy Group is currently the largest biodiesel producer in the US, with five plants producing 432 million gallons annually. The company generated a revenue of $3.6 billion in 2022. Renewable Energy Group Inc has its headquarters in Iowa, from where it operates ten production plants nationwide.
Archer-Daniels-Midland Co (NYSE:ADM) is another big corporation that has a long history of working with natural oils in the US and currently produces biodiesel from various vegetable oils. Archer-Daniels-Midland Co (NYSE:ADM) managed to raise $101.8 billion in revenue in 2022 alone. Archer-Daniels-Midland Co (NYSE:ADM) is further growing their biodiesel business and reported strong financial results in the subsector in the company's Q2, 2023 earnings call. The CEO, Juan Luciano, the CEO of ADM said the following:
"Biofuels demand continues to remain strong. Through the first half of the year, we saw robust margins from biodiesel, strong demand for ethanol and an increasing demand for vegetable oil from renewable green diesel and we expect this trends to continue in the second half. Our Spiritwood, North Dakota processing facilities is scheduled to start up in Q4, adding 1.5 million metric tons of annual soy crush capacity to our portfolio and producing low carbon intensity soybean oil for our JV partner Marathon’s nearby renewable diesel facility."
It’s players like these that have helped the US achieve its status as one of the biggest producers as well as consumers in the global biodiesel industry. The biodiesel industry's growth is not just limited to Western players; countries in the Asia-Pacific, like India, China, Thailand, and Indonesia, are also emerging as significant players, with Indonesia bagging first place in the list of the largest biodiesel producers in the world.
15 Largest Biodiesel Producers in the World
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Methodology
To curate this list of the largest biodiesel producers in the world, we have compiled data from the United States Department of Agriculture: Foreign Agricultural Services, Global Agricultural Information Network (GAIN), and Biodiesel Magazine. The rankings have been set based on the number of gallons the countries produced or were estimated to produce in the year 2022. For countries that did not have recent data available, data from 2017 was utilized.
Based on these numbers, here is the list of the 15 largest biodiesel producers in the world currently:
15. India
Biodiesel production in 2022: 48 million gallons
India comes in fifteenth place in this list of the largest biodiesel producers in the world, but its numbers are still impressive when compared with other countries in the region. As of the year 2021, the Indian government has claimed that it has a biofuel blending rate of 8.1%, which includes both biodiesel and ethanol. India is currently relying mainly on Jatropha for the production of biodiesel, which is low in yield as of yet. This is causing a significant hurdle that keeps biodiesel production in the country from going higher.
14. Netherlands
Biodiesel production in 2017: 105 million gallons
The Netherlands has shown significant promise in terms of biodiesel production, with efforts coming in from both the government as well as the private sector. In 2022, Argent Energy, a biofuel producer, expanded its biodiesel production capacity in the Port of Netherlands. The promises set forth by the company were in line with the broader Dutch coalition agreement’s plans around clean mobility.
13. Malaysia
Biodiesel production in 2017: 124 million gallons
One of the reasons why Malaysia isn’t reaching a higher place when it comes to the largest biodiesel producers in the world is because it’s not fully utilizing the capacity that it has. In 2022, the country had a total of 22 biodiesel plants, but only 19 were in operation. The 22 plants had a combined capacity of 3,044,583 tons per year, but due to the non-usage of three of these plants, only 998,862 tons were produced.
12. Canada
Biodiesel production in 2017: 132 million gallons
Canada was doing quite well for itself in 2017 in terms of biodiesel production, but the numbers have dwindled since then. The pandemic-related lockdowns of 2020 led to reduced use of transportation and, hence, a decrease in the demand for fuels. As the domestic market size dropped, so did production numbers immensely. This offset a downward chart for the country that it has not yet managed to recover from.
11. Colombia
Biodiesel production in 2022: 184 million gallons (Estimated)
Colombia is also one of the countries that have witnessed a decrease in their biodiesel production in 2022. This decrease resulted from adverse weather conditions and the government lowering the biodiesel blend mandate to B10. However, the numbers are expected to increase gradually in 2023, with the production capacity predicted to rise to 206 million gallons. This will bring about a slow improvement in the economy, which will be much appreciated after a year of decreased economic activity.
10. Poland
Biodiesel production in 2017: 264 million gallons
Rapeseed is the primary source of biodiesel production in Poland, which has been impacted by the Russia-Ukraine war. Due to the economic impacts of the conflict, rapeseed prices have increased, leading to an effect on the production of biodiesel. The production of biodiesel in the country has also led to the creation of competition between the national food, fodder, and petrol industries. It can be said that Poland's wider industrial environment is highly affected by the biodiesel industry.
9. Thailand
Biodiesel production in 2022: 351 million gallons (Estimated)
Thailand has had 13 biodiesel plants since the year 2020, which are producing more biodiesel than the country demands. The rest of the fuel is exported, with the estimated number for 2022 being 17 million gallons. The slow economic recovery after the COVID-19 pandemic has also impacted Thailand’s biodiesel industry, with both production and consumption rates still dropping.
8. Spain
Biodiesel production in 2022: 356 million gallons (Estimated)
Spain is the third largest biodiesel producer in the EU and eighth on the list of the largest biodiesel producers in the whole world. According to the 2015 biofuel law, Spain’s consumption and sales mandate for biofuels is set to rise by 0.5% in 2023. Major industry players like Repsol are taking significant initiatives, such as setting up new plants, for a shift to advanced biofuels.
7. France
Biodiesel production in 2022: 544 million gallons (Estimated)
France had already begun blending fuels in the early 2000s when many other countries were still behind on the concept. The demand has only kept increasing, with production capacity eventually rising higher than the required amount. Avril, the country’s largest producer of biodiesel, has launched biodiesel fuel specifically aimed at fleet trucks after its initial success with cars.
6. Argentina
Biodiesel production in 2022: 554 million gallons (Estimated)
Not far from France in the list of the largest biodiesel producers in the world, Argentina has increased its biodiesel mandate in an attempt to conserve foreign exchange. The country’s largest source of biodiesel is soybean oil, the supplies for which were expected to tighten as a result of the increased mandates. Increasing internal mandates will allow the country to achieve less reliance on fuel imports, which were quite significant up until 2022.
