Brazil’s ethanol producers expect a larger crop and more intense competition this year after the drought and tax measures affect gasoline prices, reducing the supply of ethanol in the previous year. A 10% increase in sugarcane production and a 3% rise in ethanol production are projected. For ethanol made from corn, which is finding room on the market, the expected increase is more than 35%. As part of Brazil’s efforts to increase the supply of clean energy, ethanol producers also anticipate better outcomes from the return of the blend of animal and vegetable fat components to fossil fuels. Ethanol from sugarcane continues to be the main biofuel, producing 26,59 billion liters in 2022–2023.
Sources: Valor Econômico/Uniao Nacional da Bioenergia (*Translated by Ia Niani)