Biodiesel price index

Biodiesel price December 2025 and outlook (see chart below)

• North America:US$1.04/KG, unchanged
• Europe:US$1.46/KG, 0.7% up
• Northeast Asia:US$1.11/KG, unchanged
• South America:US$1.38/KG, unchanged

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Biodiesel price index

This post is a summary of the Biodiesel price developments. The price developments of Biodiesel are expressed in US$ prices converted FX rates applicable at the time when the price was valid. Biodiesel price index developments are calculated from multiple separate sources of data to ensure statistical accuracy.

The outlook for Biodiesel prices is generated from different inputs including:

• Very recent price developments of immediate cost drivers of Biodiesel prices
• Recent price developments of underlying feedstocks which drive the price of Biodiesel
• Market futures for both cost drives and feedstocks of Biodiesel prices
• Adjustment of current supply/demand imbalances in the Biodiesel market
• Longer term trends in likely demand conditions

What is Biodiesel and what is it used for

Biodiesel is a renewable, biodegradable diesel fuel made from biological sources such as vegetable oils, animal fats, or used cooking oil. It is composed of fatty acid methyl or ethyl esters (FAME/FAEE) and can be used alone (in some engines) or more commonly blended with petroleum diesel to run road vehicles, trucks, buses, some ships, heating systems, and in certain cases as a feedstock for producing sustainable aviation fuels. Biodiesel reduces lifecycle greenhouse-gas emissions compared with fossil diesel and can often be used in existing diesel engines with little or no modification, though it has different solvent and cold-flow properties that affect storage and some materials in fuel systems.

How is Biodiesel produced

The dominant production route is chemical transesterification: triglycerides in oils or fats react with a short-chain alcohol (usually methanol) in the presence of a catalyst (commonly sodium or potassium hydroxide) to form fatty-acid methyl esters (biodiesel) and glycerol as a by-product. Other methods include using heterogeneous catalysts, supercritical alcohol processes, enzymatic catalysis, and advanced techniques (ultrasonic or microwave assisted) to improve yields or handle low-quality feedstocks such as high-free-fatty-acid oils and waste cooking oil. Post-reaction steps include washing, drying, and quality testing to meet fuel standards.

How large is the global market for Biodiesel

Estimates vary by source and year, but recent market reports put the global biodiesel market value in the low tens of billions of US dollars (around USD ~40–45 billion in 2024) with projected growth through the 2020s as blend mandates and renewable-fuel policies expand. Forecasts from market research firms project continued growth (multi-percent CAGR) through the 2030s, driven by policy support, mandates, and increased demand in transport and heating sectors. Note that different reports measure market value (USD) or volume (tonnes/kilotres), so figures differ by methodology.

Where is Biodiesel produced

Biodiesel production is global but concentrated in regions with large vegetable-oil or waste-oil supplies and supportive policies. Major producers include the United States, the European Union (notably Germany, France, Spain), Brazil, Indonesia, Argentina, and Malaysia; Indonesia and Brazil are particularly large producers due to palm and soy oil feedstocks and national blending mandates. Production patterns also reflect national blend mandates (e.g., rising B-blend requirements in Indonesia and policy pushes in Brazil and the EU) and growing investment in renewable-diesel/HVO capacity in several countries.