ABIOVE presents potential for the production of vegetable oils at an event on renewable fuels

The current Brazilian production of vegetable oils and fats is sufficient to meet the demand for B20 (20% biodiesel added to commercial diesel). The broad potential for production growth can be realized by increasing domestic crushing of soybeans and cottonseed. There are also opportunities in the palm, canola, sunflower and peanut production chains. 

This was one of the analyzes made by the chief economist of the Brazilian Association of Vegetable Oil Industries (ABIOVE), Daniel Furlan Amaral, during the 2nd Congress of the Brazilian Network of Biokerosene and Sustainable Hydrocarbons for Aviation (RBQAV), held on May 17th. , in Natal (RN). 

Daniel presented production numbers and other important data on the oilseed, fat and biodiesel production chain, such as number of jobs, income and aspects related to the sustainability of these activities. The soybean harvest estimate for this year is 125,4 million tons, with grain processing in the region of 48 million tons. The production of soybean meal will be 36,7 million and soybean oil will be 9,7 million tons. 

The volume of soybean oil added to vegetable oils from other sources, such as cottonseed and palm oil, reaches a total of 11 million tons. However, there is potential to reach 27 million tons, which would increase the supply of raw materials for the production of biodiesel and food. 

“If, in the short term, actions are implemented to strengthen the national biodiesel program, there will be a stimulus to the processing of oilseeds and, therefore, a greater supply of vegetable oils and meal. With greater production and consumption of biodiesel, Brazil will have greater energy security by reducing the import of mineral diesel, reducing CO₂ emissions, improving air quality, promoting family farming and generating jobs and income, as well as expanding production of animal feed”, comments the executive. 

It is worth highlighting that, according to a survey carried out by the Center for Advanced Studies in Applied Economics (CEPEA), the soy and biodiesel production chain generated GDP of R$745 billion and more than 560 thousand direct jobs in 2021.  

Given the impressive numbers, Daniel Amaral highlights the importance of resuming the growth of the biodiesel blend in 2022. “It is essential to resume the official schedule for increasing the blend defined by Resolution No. 16/2018 of the National Energy Policy Council (CNPE) so that biodiesel can provide the country with the already documented economic, social and environmental benefits”, concludes Amaral.