Brazil is set to increase biodiesel blending to 12% of diesel consumption (B12) in March 2020, its second increase in less than a year, Reuters wrote on 12 November.

Analysts, producers and government officials forecast the country introducing B12 March 2020 after an increase from 10% to 11% in September.

They saw Brazil reaching B15 by 2023 and were discussing the path to higher blends after that, Reuters wrote.

The higher blend would boost local demand for soyabeans, since 80% of Brazil’s biodiesel was made from soyabean oil, and it would also reduce imports of petroleum-based diesel fuel.

“B15 is something that we see as certain, we are testing higher blends now,” said Fabio Vinhado, head of the laboratory of Brazil’s oil and fuels regulator, ANP. Tests were being done with B20 and B30, he added.

Consultancy BiodieselBR estimates that biodiesel demand in Brazil would reach around 9.7bn litres in 2023.

Biodiesel producers association Ubrabio said there were 11 plants currently working on expansions and 10 new plants under construction. It expected production capacity to grow to 12.6bn litres once those projects were operational.

“When we reach B15, the local soya industry will have to process 8M tonnes more of soybeans, from 44M tonnes/year currently to around 54M tonnes,” said Andre Nassar, head of Brazilian soya industry group Abiove.