The use of glycerin to produce renewable LPG, known as bioLPG, could reshape how it and other biodiesel byproducts are viewed in Brazil, but structural constraints around feedstock quality and cost are likely to limit its attractiveness in the near term.
Energy research company Epe outlined bioLPG's potential role in a fact sheet published in January, presenting it as chemically identical to LPG and fully compatible with existing infrastructure.
Because it is a drop-in fuel, bioLPG could support decarbonization in segments such as cooking and small-scale industry without requiring changes to equipment or distribution systems. But Epe added that domestic production remains incipient and highly dependent on how bioLPG is positioned within existing biofuel chains.
BioLPG is not a primary output in most of Epe's production pathways, but a co-product of larger, capital-intensive processes such as renewable diesel and sustainable aviation fuel. Emerging alternatives, such as the conversion of glycerin in the biodiesel stream, could expand supply while boosting biomass streams in Brazil. Glycerin is a by-product of biodiesel production. It is widely used in pharmaceuticals, cosmetics and food applications because of its stability and ability to hold water.
But glycerinproduced in Brazilian biodiesel plants is mostly crude and would require additional refining before it could be used as feedstock for bioLPG. This extra processing step adds cost and complexity, especially in a market where bioLPG would still need to compete with LPG and other fuels.
Large Brazilian biodiesel producers are not investing in glycerin refining, meaning they cannot supply the product needed by the bioLPG market, they told Argus. These plants say that crude glycerin is important to their revenue, but it is mostly destined for export and they have no plans to invest in expanding the market domestically.
Brazil produced 8.65mn t (176,790 b/d) of biodiesel in 2025, according to oil regulator ANP. With a 10pc glycerin yield, crude glycerin production is estimated at about 865,000t for the year. Combined exports of crude and refined glycerin totaled 821,245t in 2025, with China, India and Russia standing out as the main destinations. Refined glycerin represented 145,00t of that total.
Industries would need to pay a premium to international prices for those glycerin volumes to stay in Brazil.
Brazilian calculated crude glycerin prices stand at $770-780/t fob Santos, according to Argus' biweekly assessment published on 19 March. Refined glycerin at the port is trading between $1,250-1,270/t.
These dynamics underline the gap between the technical promise of glycerin-based bioLPG and current market behavior. While glycerin is abundant, its existing export outlet provides liquidity and price discovery that domestic bioLPG projects would struggle to match without policy support or long-term offtake agreements.
Redirecting glycerin toward bioLPG production would require domestic buyers to compete with international bidders while also absorbing the cost of refining.
BioLPG is expected to expand on a larger scale at first by leveraging existing renewable diesel, SAF or other processes that can handle renewable feedstocks and produce bioLPG as a co-product.
Epe itself points to incentives, regulatory clarity and cost reductions as prerequisites for accelerating domestic bioLPG supply. Until those conditions are met, glycerin-to-bioLPG is likely to remain a medium-term option rather than a near-term lever for improving biodiesel margins.
