Low-Carbon Biofuels in Latin America and the Caribbean: A Key Strategy for the Energy Transition

Olade

The Latin American Energy Organization (OLADE) presents its latest Technical Note, titled “An Introduction to the Biofuels Sector in Latin America and the Caribbean.” This document analyzes the strategic role of low-carbon biofuels in transport decarbonization and their contribution to the region’s energy transition.

In 2023, Latin America and the Caribbean contributed 27% of the world’s liquid biofuel production, with Brazil as the main player, accounting for 93% of regional production. This position reflects the region’s competitive advantages in terms of natural resources, agro-industrial capacity, and accumulated experience in the sustainable production of bioethanol and biodiesel.

Low-carbon biofuels are emerging as a key solution for reducing greenhouse gas (GHG) emissions, especially in sectors with low electrification feasibility, such as heavy transport, aviation, and maritime transport. The Technical Note highlights the potential of advanced fuels such as SAF (Sustainable Aviation Fuel) and HVO (Hydrotreated Vegetable Oil), which represent viable alternatives for advancing toward carbon neutrality in the region.

Between 2013 and 2023, biodiesel production in Latin America and the Caribbean grew by 163%, while bioethanol recorded a 36% increase. This growth reflects the sector’s dynamism and the implementation of public policies such as biofuel blending mandates in several countries.

The document also highlights the region’s remaining challenges, such as the need to strengthen sustainability regulatory frameworks, optimize logistics infrastructure, and ensure the traceability of the production chain.

According to OLADE’s projections, achieving carbon neutrality by 2050 will require a 360% increase in regional liquid biofuel production, reaching 172,990 thousand cubic meters.

The full Technical Note is available for consultation and download at:
https://www.olade.org/publicaciones/nota-tecnica-no-5-una-introduccion-al-sector-de-los-biocombustibles-en-america-latina-y-el-caribe/