Argentina’s biodiesel production expected to fall 30% in 2015

Argentina’s biodiesel production is expected to decrease by 30% in 2015 as growth of domestic demand cannot compensate for declining foreign exports.

The Argentine Biofuels and Hydrogen Association (ABHA) estimates this year’s total biodiesel output to cap at 1.8 million tonnes, a significant decrease from 2.58 million tonnes in 2014.

Exports are expected to decline by 55% and the domestic Argentinian consumption, due to rise 11%, will not be able to make up the difference.

The decrease means that the country’s biodiesel industry is working only at approximately 40% of its total 4.6 million tonnes per year installed capacity.

But Claudio Molina, ABHA executive director, says he hopes to see a turnover in the situation with the presidential election to be held on 22 November, where both candidates are expected to improve business conditions.

One improvement suggestion Molina shares is increasing the biodiesel blend percentage to 12% from the current 10%, with a possible later increase to 15%.

Argentina biodiesel exports began dwindling in 2012 when the EU raised taxes on biodiesel imports after suspected product dumping by Argentina.

Argentina has filed a complaint with the World Trade Organisation against the EU anti-dumping taxes.