<article><p><i>After tight supplies of soybean oil forced Brazil to temporarily <a href="https://direct.argusmedia.com/newsandanalysis/article/2148259?keywords=biodiesel%20brazil">lower the biodiesel blend mandate</a> late last year, there is a growing urgency to develop alternative feedstocks. Argus spoke to bioenergy researchers Bruno Laviola and Itania Soares at Brazil's government-controlled crop research agency Embrapa about ongoing research.</i></p><p><b>What progress has been made toward diversifying away from soybean oil as Brazil's main biodiesel feedstock?</b></p><p>Bruno: Since Brazil's biodiesel program was launched in 2004, diversification was a pillar. The goal was to have each region produce its own raw materials for biodiesel production. But that has not happened and soybean oil has consolidated its position as the main feedstock for biodiesel production, while others have failed to take off. The need to develop alternative feedstocks is even more important with the soybean oil shortages this year.</p><p><b>What has kept other feedstocks from gaining market share?</b></p><p>Bruno: It is mainly a question of scale. Brazil plants roughly 35mn hectares of soybeans each year and only 1mn hectares of cotton, around 220,000 hectares of oil palm and just 60,000 hectares of canola. There simply is not enough production to diversify into new feedstocks at this point.</p><p><b>Which alternative feedstocks have the most potential?</b></p><p>Bruno: We see significant potential for canola oil. Globally it is the number-three feedstock for biodiesel. Embrapa is currently working on a project that will "tropicalize" canola oil production. Brazil already did this successfully with new varieties of soybeans in the 1970s, which allowed the crop to be grown closer to the equator where cycles of the sun are different. Embrapa is working on developing new canola varieties that can be produced in the <i>cerrado</i> region and in the northeast. Canola is an ideal winter crop and can be rotated with soybeans. On irrigated lands, canola can production up to 1.5 tons of oil per hectare, which is a significant volume. Canola meal also has a high protein content and can be used for animal feed just like soymeal. We expect a significant increase in canola planting over the next five years.</p><p>Itania: We also see potential for more corn oil to be used in biodiesel production. With the recent increase in corn ethanol production, there has been an increase in corn oil output. Much of the new corn ethanol production is located in the center-west region of the country, where many biodiesel plants are located, which means that it can potentially be used for biodiesel production in the future.</p><p><b>Palm oil is one of the main biodiesel feedstocks globally. What has kept Brazil from producing more biodiesel from palm oil?</b></p><p>Itania: Embrapa is doing a lot of research with the macauba palm, which produces eight times more oil than soybeans, but more technological development is still needed. First of all, there are logistical issues, because transporting the crop can be expensive. Second, there is already strong demand for palm oil from the cosmetics and food industry and Brazil still does not produce enough palm oil to meet domestic demand. Biodiesel producers need to have a cheap, reliable supply of feedstock, and palm oil does not satisfy those demands at present.</p><p>Brazil also has the potential to increase its use of recycled oils for the production of biodiesel. Globally, recycled oils make up nearly 10pc of biodiesel production. We are working with waste disposal companies to expand the use of recycled oils, which are currently not used.</p><p><b>There was a lot of hype about jatropha as a feedstock. What happened there?</b></p><p>Bruno: Producers put the cart before the horse with respect to jatropha cultivation. There was a lot of planting, but there was not enough research conducted about the crop. Jatropha meal is highly toxic and it is difficult to dispose of after the oil is extracted. Because jatropha is a perennial plant, it has a very long production cycle, which means it takes much longer to do research on the crop. Recently, we have introduced a new variety from Mexico, which is not toxic and the meal can be fed to animals. But ultimately, production costs need to be on par with soybean oil, and that still is not the case.</p><p><b>What is the outlook for other feedstocks to be used for biodiesel production?</b></p><p>Bruno: The agriculture ministry together with Embrapa and biodiesel producers are working together to diversify feedstocks. Last year, we published a long-term agenda for the sector which aims to increase the share of other oilseeds to 15pc of total output by 2028. Biodiesel producers are on board with this agenda and we believe these goals can be reached.</p></article>
