Argentina: Biofuels Annual

Argentina's fuel ethanol production is forecast to reach a record 1.35 billion liters in 2026, driven by record domestic consumption, additional corn-based production capacity, and a March 2026 regulation allowing fuel distributors to blend up to 15 percent ethanol through voluntary agreements above the mandatory 12 percent rate. Corn-based ethanol is expected to account for approximately 60 percent of output, while stronger domestic demand is forecast to reduce exports modestly. Biodiesel production is projected at nearly 1.2 billion liters, up eight percent from 2025, as higher domestic use more than offsets weaker exports. However, exports are forecast at their lowest level since 2007, and the industry is expected to operate at only about 27 percent of installed capacity. Proposed legislation under consideration would raise the ethanol mandate to 15 percent and the biodiesel mandate to 10 percent, but biodiesel provisions remain politically contentious.