Argentina: Biofuels Annual

Bioethanol consumption in 2023 is forecast at 1.17 billion liters, the highest on record, because of strong gasoline demand and a high blend rate. Bioethanol made from corn is expected to account for 62 percent and from sugarcane 38 percent. A severe drought in 2022 and 2023 affected most crops and regions in the country but had a significant impact on the sugarcane industry which will have a smaller output to produce ethanol. Biodiesel production is expected at 1.0 billion liters, near record lows. Biodiesel exports in the first half of 2023 have been slower than normal, due to the uncompetitive price of Argentine biodiesel entering the EU. Domestic biodiesel demand is also expected to be restrained because of lower overall diesel demand and lower mandated blend rates. The only significant investment taking place in the local biofuels sector is the expansion of two of the large corn bioethanol plants which are schedule to be operation in late 2024 or early 2025.