Brazil’s biofuel industry is expected to invest R$106.7 billion over the next decade to expand production capacity, driven by incentives under the Fuel of the Future Law, according to the Energy Research Company (EPE). Most investments will go to ethanol (R$66.2 billion), including sugarcane, corn, and second-generation ethanol, followed by sustainable aviation fuel (SAF) and green diesel (R$27.9 billion). Additional funds target biodiesel, biomethane, and carbon capture. The policy sets mandatory blending targets for biofuels and emissions reduction goals, aiming to increase renewables in the energy mix. Biomethane and corn ethanol have responded fastest to the new rules. The government estimates the program could unlock up to R$270 billion in total investments, despite gradual implementation to allow industry adaptation.
Source: Nova Cana
