Five takeaways from Fastmarkets Biofuels and Feedstocks South America 2025 event

Read our highlights taken from Fastmarkets’ first South America Biofuels and Feedstocks conference, held on 14 August in São Paulo.

South America is increasingly in the spotlight of the global energy transition, and Brazil’s biofuels industry was at the center of discussions during the Fastmarkets Biofuels & Feedstocks South America 2025 conference.

The conversations throughout the event made it clear that the country’s agribusiness is moving at full speed, driven by ambitious goals that reflect its central role in shaping the future of sustainable energy. However, the consensus among most discussions is that agricultural strength alone will not be enough to achieve these objectives. Longstanding challenges such as infrastructure bottlenecks and limited access to capital remain, while new demands from the green economy, such as traceability, diversification of feedstocks and sustainability certification, add further complexity.

Here are the highlights of what we learned at the event.

Higher biodiesel mandates provide momentum

Industry participants were optimistic about Brazil’s biodiesel sector, with growing momentum toward higher blend mandates. The government’s current target of B15 is expected to move toward B20 in the coming years, with participants suggesting that even B25 could be viable in the medium term.
The implementation of higher mandates was seen as both a growth opportunity and a challenge.

While it would reinforce Brazil’s role as a global biofuels leader, speakers highlighted the need for continued investment in refining capacity, logistics and quality assurance to ensure smooth adoption at scale.

Feedstock expansion positions Brazil as a global growth driver

Optimism extended beyond biodiesel and into the wider feedstock market. Brazil’s soybean crushing and production continue to expand at a pace above the global average, reinforcing its position as a critical supplier for both domestic consumption and international demand.

Some panelists noted that diversification of feedstocks (e.g., corn oil, animal fats and future-generation inputs such as used cooking oil) will be essential to secure supply for a growing biofuels sector. While soy remains dominant, the industry is actively seeking ways to mitigate risks tied to land use and environmental pressures by broadening its feedstock base.

Traceability and certification emerge as key challenges

As global markets tighten sustainability requirements, the region’s biofuels industry faces increasing pressure to implement robust traceability and certification systems. Some discussions assessed the role of technologies such as blockchain and satellite monitoring in guaranteeing transparency across the supply chain.

Participants warned that without consistent standards and enforcement, Brazilian exporters could face market access risks in regions such as Europe and North America, where regulators and consumers are increasingly demanding verified low-carbon products.

Infrastructure and financing remain bottlenecks

Despite strong growth prospects, speakers acknowledged that infrastructure limitations continue to weigh on the competitiveness of Brazil’s biofuels sector. Access to capital markets was also highlighted as a barrier, with financing costs and credit availability remaining uneven across different regions of the country.

Public-private partnerships and targeted government incentives were pointed out as potential solutions, with calls for greater collaboration to unlock investments in logistics and processing facilities.

Brazil seen as cornerstone of global decarbonization

The overarching theme of the conference was Brazil’s strategic importance in the global decarbonization agenda. With abundant agricultural resources, expanding production capacity and growing policy support, the country is well positioned to play a central role in meeting rising global demand for renewable fuels.
Speakers highlighted that Brazil’s scale and resource base give it a competitive advantage few regions can match, while also reflecting upon the fact that global expectations are rising quickly.

It became clear that the road ahead will not be one without obstacles. However, participants agreed that the resilience of South America’s agribusiness, combined with stronger collaboration across government, finance and industry, will be essential to sustaining growth.

For those trading in the biofuels and feedstocks market, we capture pricing across the complex marketplace, including biodiesel, glycerin, renewable identification numbers (RINs), California’s Low-Carbon Fuel Standard (LCFS) credits and related certificate markets in Europe. Discover more.

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