Biofuels are expected to remain in high demand for the next few years as a green alternative aiding in the energy transition. The Itaú BBA says this demand could boost ethanol exports from Brazil, other ‘green’ fuels, and grains used in biofuel production. It could also increase the international prices of grains. Guilherme Bellotti, Agro Consultancy manager at the bank, said that the US industry has many incentives to increase its production in the sector, especially ethanol and biomass diesel. Ethanol is also used as an input for making aviation biokerosene, also known as Sustainable Aviation Fuel (SAF). This creates a new demand that could be met with Brazil’s help. “If 30% of the US SAF output projected for 2050 come from corn ethanol, the additional demand for corn in the country would be 150 million tonnes,” he estimated.
Sources: GloboRural/Datamar News