Just as it appeared that some countries were slowing down or easing up their biofuel ambitions and the pressure relief infrastructure required, circumstances have dictated a rather sudden and abrupt change of course that has once again put biofuels firmly in the spotlight.
The sudden surge of crude oil prices since late February 2026 and the risk of a significant shortage of supplies have led to countries accelerating their plans for biofuel production or reversing course on their energy strategy if it was based on high petroleum supplies.
This has led to plans that had been announced in the wake of the Belem 4x initiative being sped up.
Why is this the case? Which countries are involved? And is it the best way to promote energy security when conventional supplies are disrupted?
Why Are Countries Increasingly Switching To Biofuels?
When the Strait of Hormuz in Iran was closed in the wake of a major conflict in the Middle East, it marked another major flashpoint that highlighted just how vulnerable many nations reliant on seamless supply chains of crude oil and petroleum by-products truly were.
The effect, and indeed the catalyst, is similar to the 1973 energy crisis, where a months-long oil embargo led to global geopolitical effects that still linger to this day in many countries.
One of the biggest effects was seen in Brazil, which adopted one of the first national biofuel policies in the world. In 2026, they are using an E32 blend, u, one of the biggest biofuel blends they have ever mandated.
Other countries highly reliant on fuel from West Asia have also attempted to make the switch in order to make themselves less dependent on volatile fuel supplies that can become exponentially more expensive.
Which Countries Are Boosting Their Biofuel Use?
Whilst this is not an exhaustive list, here are some of the most notable countries that have changed their biofuel strategy since late February 2026.
Vietnam
The country of Vietnam had previously planned to adopt an E10 biofuel blend at the start of June, but Reuters reports that this strategy has been accelerated to April instead.
As the country is particularly vulnerable to supply chain disruptions near the Strait of Hormuz, and diesel prices increased by 70 per cent in just three weeks, anything to improve energy security is key.
Indonesia
The world’s largest producer of palm oil, Indonesia had planned to enact a 50 per cent biodiesel blend at some point in 2026, but plans have been brought forward significantly to try and offset the effects of oil shortages.
This is another chapter in an astonishing surge of biofuel development, with Indonesia increasing its mandate from 20 per cent to 50 per cent in just eight years.
Brazil
The world’s pioneer in biofuels, Brazil is planning to adopt an E32 biofuel blend before the end of June, according to Reuters.
Much like Indonesia, Brazil is one of the world’s biggest producers of sugarcane, which in combination with corn, makes up the feedstock for its production of biofuel.
United States
Whilst it initially appeared as if biofuel subsidies would be cut, the Environmental Protection Agency announced record-high mandates for biodiesel derived from soy and ethanol derived from corn.
However, this has led to a conflict between the White House and the oil refining industry, according to Reuters, which argues that the initiative could cause already surging prices to increase even higher.
Are Any Countries Not Increasing Their Biofuel Production?
Whilst quite a few countries are monitoring or increasing their biofuel mandate, not every country is doing so, largely because they are exploring alternative means to manage the fuel crisis.
Part of the reason for this is concerns about the long-term viability of biofuels as a more secure alternative to fossil fuels and whether it has an unintentional effect of increasing food prices.
Food prices have already increased due to spikes in fertiliser prices as well as increases in the cost of energy and transportation, but dedicating an increasing amount of crop yield to biofuels could cause food prices to increase even further.
The European Union has a cap on biofuels that rely on food crops or deforestation, which would offset the carbon benefits of using biofuels in the first place.
However, the benefits of cleaner energy sources, which are less vulnerable to geopolitical events, are a benefit that cannot be ignored in an era when energy security is so precarious.
Biofuels will likely increase further, particularly as the true impact of the events of early 2026 starts to be felt, but it is a step towards further energy security.
