Brazil has been particularly chosen to host this conference as the Brazilian biodiesel industry is making rapid strides towards increased production. It is already the seventh largest producer of biodiesel in Europe and there are more than 28 biodiesel production plants in pipeline. This is primarily due to the Brazillian Renewable Energy Program (REP), 2005, which kick-started the production of biodiesel.

The current regime of full tax exemption for a limited volume of biodiesel is the key incentive system for biodiesel in Brazil. Brazilian biodiesel output will increase to 3.1 million metric tons this year from 2.56 million tons in 2013, with soybean oil the main feedstock, the Hamburg-based researcher wrote in an e-mailed report.

Brazil’s government has mandated biodiesel account for 6 percent of diesel fuel as of July, rising to 7 percent in November, according to Oil World. South American soybean oil prices rose in the past four weeks, reflecting demand from the biodiesel industry in Brazil and Argentina, the researcher said.