The Latin American Energy Organization (OLADE), in its Technical Note titled “An Introduction to the Biofuels Sector in Latin America and the Caribbean,” presents a detailed analysis of the strategic role that low-carbon biofuels play in decarbonizing transportation and their contribution to the region’s energy transition.
In a context where the climate emergency demands sustainable solutions, biofuels emerge as a viable alternative to reduce greenhouse gas (GHG) emissions, particularly in sectors that are difficult to electrify, such as heavy transportation, aviation, and maritime transport.
According to the report, in 2023, Latin America and the Caribbean contributed 27% of the global production of liquid biofuels, with Brazil consolidating its position as the main player by supplying 93% of the regional production. This leadership is due to a combination of competitive advantages, such as the availability of natural resources, a robust agro-industrial capacity, and a well-established track record in the sustainable production of bioethanol and biodiesel. The importance of these fuels in the region is reflected in their sustained growth over the past decade: between 2013 and 2023, biodiesel production grew by 163%, while bioethanol increased by 36%.
Advanced biofuels, such as SAF (Sustainable Aviation Fuel) and HVO (Hydrotreated Vegetable Oil), represent high-potential alternatives for reducing emissions in aviation and maritime transport, sectors where the transition to carbon-free technologies faces technological and economic barriers. In the region, it is essential to develop more robust sustainability regulatory frameworks, improve logistical infrastructure, and strengthen traceability systems in the production chain to ensure the sector’s sustainability and to achieve carbon neutrality by 2050. This will imply a 360% increase in regional liquid biofuel production, reaching 172,990 thousand cubic meters.
In this context, OLADE reaffirms its commitment to developing comprehensive strategies that facilitate the decarbonization of transportation in Latin America and the Caribbean, contributing to global climate objectives and strengthening the region’s energy security. The consolidation of the biofuels sector will be key to advancing towards a cleaner and more resilient energy matrix.
