Biofuel consumption in the European Union is expected to grow by 6% in 2026, says USDA.

Biofuel consumption in the European Union is expected to grow by 5.9% in 2026, after increasing by 6.4% in 2025, according to the annual report from the attaché of the EU. United States Department of Agriculture (USDA) In the European bloc, this growth will be supported by the competitiveness of ethanol compared to gasoline and the continued implementation of the revised Renewable Energy Directive (RED II). In the biomass-based diesel (BBD) segment, consumption increased by 4.1% in 2025 and is expected to increase by a further 2.8% in 2026, reflecting the tightening of greenhouse gas (GHG) emission reduction targets and the adoption of new mandates for Sustainable Aviation Fuel (SAF). Despite the strong demand, the European Union's bioethanol fuel production is expected to remain virtually stable in 2026. According to… USDAMajor producers, such as France and Germany, are already operating near maximum capacity, while Hungary's production remains limited by a shortage of corn in the domestic market and restrictions on grain imports from Ukraine. Meanwhile, BBD production is expected to maintain its expansion trajectory. After growing by more than 3% in 2025, a 4.2% increase is expected in 2026, driven mainly by a 7.2% increase in the production of renewable diesel (HDRD) and SAF. In foreign trade, the USDA The European Union projects an increase in bioethanol imports in 2026, driven by a combination of growing demand and stagnant domestic supply. Among the main suppliers, only the United States and Ukraine are expected to significantly increase shipments to the bloc. Ukraine has a tariff quota of 158 million liters for bioethanol exports to the European Union and has been expanding its market share over the last decade. Brazil, meanwhile, has benefited from improved access conditions following the conclusion of the European Union-Mercosur agreement, although… USDA It is estimated that the expansion of Brazilian exports will be limited by the strengthening of domestic demand. In the biodiesel and renewable diesel market, imports from the European Union fell by 22% in 2025, after the imposition of anti-dumping tariffs that sharply reduced supply from China. Initially, the drop was partially offset by increased exports from Malaysia and South Korea. Preliminary data for 2026 indicate a collapse in imports from Argentina, accompanied by rapid growth in purchases from India and Thailand.

This text was translated by machine from Brazilian Portuguese.