ETHANOL PRODUCTION SHOULD CUSHION THE IMPACT OF RISING OIL PRICES, SAY ORGANIZATIONS.

Brazil’s bioenergy sector is set to start the 2026/27 harvest with record ethanol output, adding nearly 4 billion liters—close to the country’s 2025 gasoline imports—according to Bioenergia Brasil, National Union of Corn Ethanol, and Brazilian Sugarcane and Bioenergy Industry Association. The expansion comes amid volatile global oil prices, reinforcing ethanol as a competitive, subsidy-free domestic alternative. Ethanol already exceeds 30 billion liters of gasoline equivalent in Brazil’s fuel mix and has delivered major consumer savings, estimated at R$5 billion by 2025 and R$140 billion since flex-fuel adoption. Growth is driven by long-term policies such as Proálcool, RenovaBio, and higher ethanol blending mandates, supporting a 30% increase in production capacity and strengthening Brazil’s energy security.
Source: Nova Cana