Chinese exports of biomass-based diesel (BBD) are increasing, according to a United States Department of Agriculture (USDA) report released by Biodiesel magazine.
Exports of biodiesel based on used cooking oil (UCO) and hydrogenated renewable diesel (HDRD) increased significantly in the first half of this year due to strong demand from the European Union (EU), according to the annual report from the Global Energy Network. Agricultural Information (GAIN) from the Foreign Agricultural Service (FAS) of China: Biofuels Annual report, from the Foreign Agricultural Service (FAS).
At 3.7 billion liters/year (977.44 million gallons), biodiesel production has remained relatively stable, as reported by Biodiesel magazine on October 9.
Considerable expansions were expected at export-oriented HDRD plants, with 3 billion liters of capacity expected to come online by the end of this year and a further 1.2 billion liters of capacity planned.
China increases production with increasing use of UCO
China therefore expected to have 48 biodiesel plants in operation by the end of 2023, with a combined output of 3.7 billion liters, up from 46 plants with a combined output of 3.5 billion liters in the previous year. and 44 plants with a combined output of 3.3 billion in 2021. Capacity utilization was expected to reach 51% this year, up from 43% last year and 37% in 2021.
Furthermore, by the end of this year, China is also expected to have HDRD facilities in operation, with a combined production of 3 billion liters, compared to 11 installations in 2022, with a production of 2 billion liters, and nine installations in 2021, with a production of 1 billion liters. Capacity usage was expected to be 47% this year, a level of usage maintained from 2022. Capacity usage was at 62% in 2021.
Approximately 1.815 million tons of UCO were expected to be used in biodiesel production this year, compared to 1.42 million tons in 2022 and 1.16 million tons in 2021. UCO is also used to produce HDRD, with consumption forecast of 1.31 million tons this year, compared to 880,000 tons in 2022 and 580,000 tons in 2021. Therefore, the biodiesel and HDRD production scenario in China is constantly evolving.
Significant growth in the production and consumption of biodiesel and HDRD in 2023
Total biodiesel and HDRD production is expected to reach 3.3 billion liters in 2023. This represents an increase from 2.43 billion liters in 2022 and 1.834 billion liters in 2021.
Furthermore, the forecast indicated that domestic consumption would reach 850 million liters in 2023. This marks an increase compared to 734 million liters in 2022 and 564 million liters in 2021.
Meanwhile, in 2023, China's BBD imports saw a significant increase, rising 40% from the previous year. More than 90% of this biodiesel was sourced from Indonesian and Malaysian palm oil.
China was expected to import 500 million liters of bio-based diesel fuel this year. This would represent a significant increase compared to 358 million liters in 2022. In 2021, only 204 million liters were imported.
Exports forecast for this year were 2.95 billion liters. Of these, 1.32 billion liters were HDRD. In 2022, there were 2.054 billion liters, including 900 million HDRD. In 2021, there were 1.475 billion liters, with 600 million HDRD.
Source: Oils & Fats International
