57 percent of Brazilian biodiesel capacity idle

In Brazil, The Institute of Applied Economic Research believes one of the solutions for consolidating the country’s biodiesel program could be the diversification of agricultural outputs, reducing dependence on fiscal incentives and the lowering final production costs.

Their new study shows that, of the total installed industrial biodiesel capacity, about 57% is idle. Most biodiesel feedstocks are supplied by family farmers in the north, northeast and southern parts of the country in an attempt to boost their participation in biofuel production, as ethanol production is dominated by large-scale ethanol producers.