Brazil will increase production at its largest biodiesel mill by more than a third under plans announced by state-run energy major Petrobras on Friday.

The expansion will raise output at the Candeias facility in Bahia state from 217Ml/y to 300Ml/y, Petrobras said in a statement.

"This will improve the quality of the production process and the final product," Petrobras biofuel chief Alberto Fontes said.

The Rio de Janeiro-based firm did not reveal when the work would be complete.

According to Petrobras, Brazil's biodiesel refinery park currently produces more than 800Ml/y of the fuel.