Key facts
- Argentina's fuel ethanol production is forecast to reach a record 1.35 billion liters in 2026.
- Corn-based ethanol is expected to account for about 60 percent of the total output.
- Biodiesel production is projected to increase by eight percent to nearly 1.2 billion liters.
- Exports for both ethanol and biodiesel are expected to decline, with biodiesel exports at their lowest since 2007.
- Proposed legislation aims to increase the ethanol mandate to 15 percent and biodiesel to 10 percent.
Argentina's fuel ethanol production is anticipated to hit a record 1.35 billion liters in 2026, fueled by robust domestic consumption and expanded corn-based production capacity. A regulation enacted in March 2026 permits fuel distributors to voluntarily blend up to 15 percent ethanol, exceeding the current mandatory 12 percent rate. Corn is expected to be the source for approximately 60 percent of the ethanol output.
Concurrently, biodiesel production is projected to rise by eight percent from 2025 levels, reaching nearly 1.2 billion liters. This increase is attributed to higher domestic usage, which is expected to more than compensate for a decline in exports. However, biodiesel exports are forecast to be at their lowest point since 2007, and the industry is anticipated to operate at only about 27 percent of its installed capacity.
Discussions are underway regarding proposed legislation that could further elevate the ethanol mandate to 15 percent and the biodiesel mandate to 10 percent. The biodiesel provisions, however, remain a subject of political contention.