Mainstreaming biodiesel in Colombia

“We are currently the largest biodiesel company in Colombia, holding a 30% market share.”

The Energy Year talks to Javier Ospina, general manager of BioD, about the company’s production capacity and market position in Colombia and how it contributes to sustainability. BioD produces and commercialises sustainable biodiesel and renewable oleochemical solutions.

What is the current state of BioD’s biodiesel production and market position in Colombia?
We are currently the largest biodiesel company in Colombia, holding a 30% market share and operating in the central and southwestern parts of the country. Our production capacity has grown significantly since our inception in 2008. We started with a capacity of 120,000 tonnes per year in 2009 and doubled it to 240,000 tonnes per year, our current maximum capacity, by 2015 using German technology.
For 2024, we projected sales of 220,000 tonnes. To meet growing demand, we have plans to expand our capacity further by adding an additional plant with a capacity of 100,000 tonnes per year by 2027, which would bring our total annual production capacity to 340,000 tonnes. This expansion represents an investment of around USD 60 million, which we currently have the capacity to finance internally.
Our main customers include major wholesalers in the country, such as Primax, Terpel, Chevron, Biomax, Puma, Zeuss and Ecopetrol. We’re also pioneers in entering the marine sector in Latin America, having conducted pilot tests with a B22 blend (22% biodiesel) in international waters.

How does BioD’s biodiesel contribute to sustainable practices?
Our biodiesel production is making a substantial, measurable impact on Colombia’s sustainability goals. Currently we’re preventing the emission of approximately 700,000 tonnes of CO2 per year. To put this into perspective, it’s equivalent to removing all cars from Bogotá’s streets for 90 days.
Our flagship product, Premium Gold biodiesel, which now constitutes 100% of our production, achieves an impressive 89% reduction in emissions compared to conventional diesel. This significant reduction underscores the critical role our product plays in Colombia’s efforts to combat climate change and improve air quality.
We’re committed to sustainability throughout our value chain. We have RSPO [Roundtable on Sustainable Palm Oil] certifications, which are specific sustainability certifications for palm oil. We also have ISCC [International Sustainability and Carbon Certification] certifications, allowing us to deliver high-value-added products to markets such as Europe. Moreover, we’re part of an alliance ensuring zero deforestation along our value chain.
In terms of water conservation, last year we managed to recycle 90% of our wastewater and reuse it, equivalent to supplying 8,800 water tankers to our communities. We’ve also declared our intention to be carbon neutral by 2035 along our entire value chain, demonstrating our commitment to the planet and the wellbeing of people and communities and our impactful innovation for profitable and sustainable growth.