The evolution of biofuel policy continues to push for expanding output. Recent developments this past quarter suggest that many countries, including the U.S., have worked to close loopholes in existing policies and push for larger biodiesel consumption.
According to a report from U.S. Soy, the impacts of these developments are expected to increase global biodiesel supplies in 2019.
The largest driver of growth is expected from Southeast Asia, where growing palm oil supplies have spurred cheaper prices along with a greater push for biofuel processing.
Top global palm producer Indonesia saw its government increase the blending rate of Palm Methyl Ester, or PME, into biodiesel blends to 20 percent (B20) in September, with plans for expansion to B30 by 2020.
In Malaysia, the government has made another push in late-November to require B10 biodiesel consumption in its domestic diesel fleet. Larger domestic biodiesel consumption targets are expected to lend support to palm oil prices and decrease competition for other fats and oils on the global market.
