Biodiesel (FAME): Production
Indonesia's palm surge and plenty of idle capacity
Indonesia's palm surge and plenty of idle capacity What this tab covers Who makes it and how much: world capacity and output, utilisation, the top producing countries and companies globally and in India, concentration, new capacity coming, and each region's position.| Measure | Figure | Detail | Source |
|---|---|---|---|
| World capacity | US 1.97 billion gallons a year (1 Jan 2026); India about 2 billion litres; Indonesian producers hold about 5 Mt a year of spare capacity (2026) | EIA via OPIS Sep 2026; USDA FAS Jul 2026; Argus Glycerine Mar 2026 | |
| World output | about 45-50 Mt (2024-25, indicative) | UFOP 2026 (biodiesel plus HVO about 65 Mt), derived | |
| Capacity utilisation | US FAME about 58% (2025); India about one-third | Overcapacity is chronic: mandates set demand while plants were built for higher blends or exports lost to trade defence. | farmdoc daily Jun 2026; USDA FAS Jul 2026 |
| Concentration | top country about 26%, top three about 66% (indicative, on 47 Mt base) | Indonesian output is concentrated in plantation-refining groups (Wilmar, Musim Mas, Apical, Sinar Mas); Brazil and the US have many mid-size plants. | UFOP 2026; indicative |
| New capacity | Indonesia keeps B40 in 2026, B50 postponed with no new date (Jan 2026); Brazil rising towards B20 by 2030 (indicative); US FAME 1.78 billion gallons projected for 2026 | B50 could take Indonesian biodiesel use to 16.3-17 Mt (GAPKI via palm_oil tile). farmdoc projects US FAME at 1.78 billion gallons in 2026 and 1.88 billion in 2027 under the final RFS volumes. | Investortrust, 14 Jan 2026; palm_oil tile; UFOP 2026; farmdoc daily Jun 2026 |
Top producing countries
Indonesia 26% · 12.1 Mt biodiesel (2024); 12.7 Mt used in 2025 European Union 23% · about 10.6 Mt FAME (2025, derived: EBB members 6.89 Mt at about 65% coverage) Brazil 17% · about 8 Mt (2024, indicative, basis: about 9 billion litres at B14) United States 8% · about 3.8 Mt (2025, derived: about 1.15 billion gallons) China 5% · about 2-3 Mt, mostly UCOME for export (indicative) Thailand 3% · about 1.5 Mt palm biodiesel (indicative) UFOP Supply Report 2026, section 2.1 (2024 data); palm_oil tile; European Biodiesel Board Statistical Report 2025-2026 (Jun 2026) (derived); indicative; farmdoc daily, Jun 2026 (EIA data for 2025) (derived)Largest producers: global
| Company | Country | Volume | Year | Source |
|---|---|---|---|---|
| Wilmar International largest palm biodiesel producer (indicative) | Singapore / Indonesia | not published | 2025 | not published in sources reached |
| Musim Mas integrated palm refining and biodiesel (indicative) | Singapore / Indonesia | not published | 2025 | not retrieved |
| Apical (Royal Golden Eagle) palm biodiesel and oleochemicals (indicative) | Indonesia | not published | 2025 | not retrieved |
| ADM soy and rapeseed biodiesel in the Americas and Europe (indicative) | US | not published | 2025 | not retrieved |
| Be8 largest Brazilian producer | Brazil | 15% of Brazil biodiesel market | 2026 | Argus Glycerine, 5 Mar 2026 |
| Verbio rapeseed biodiesel, ethanol and biomethane (indicative) | Germany | not published | 2025 | not retrieved |
| Chevron Renewable Energy Group largest US FAME fleet, also renewable diesel (indicative) | US | not published | 2025 | not retrieved |
Largest producers: India
| Company | Country | Volume | Year | Source |
|---|---|---|---|---|
| Indian biodiesel industry (all producers) about 2 billion litres capacity, one-third used; no large listed pure-play producer identified | India | 556 million litres produced (2025); 640 forecast for 2026 | 2025 | USDA FAS India Biofuels Annual (23 Jul 2026), via BioEnergy Times, 14 Aug 2026 |
| Oil marketing companies (IOCL, BPCL, HPCL) buy UCO biodiesel under expressions of interest and blend into diesel (indicative) | India | not published | 2026 | indicative |
India's biodiesel sector is small and fragmented: about 2 billion litres of capacity but only about a third used because edible oils are imported and UCO collection is limited. Output was about 556 million litres in 2025 and exports are forecast at 110 million litres in 2026, against a 5% blending target for 2030 (USDA FAS, Jul 2026).
Position by region
| Region | Position |
|---|---|
| US | FAME production about 1.15 billion gallons in 2025 at 58% utilisation; RFS biomass-based diesel volume 9.07 billion RINs in 2026 and half RINs for imports from 2028. |
| EU | About 12.2 Mt FAME demand in 2025; definitive anti-dumping duties on Chinese FAME since Feb 2025 cut imports from 1.07 Mt (2023) to 0.16 Mt (2025) (EBB). |
| India | Under 1% blending; supply limited by feedstock; B100 sales to bulk users allowed (indicative). |
| China | Exports UCOME and UCO; EU duties redirected flows (indicative). |
| Japan | Small; imports some FAME and UCO-based fuels (indicative). |
| Middle East | Not material. |