Beyond sugarcane and corn, Brazil’s ethanol industry opens door to new biofuel feedstocks
Brazil’s $20 billion ethanol industry is expanding beyond sugarcane and corn, exploring feedstocks such as wheat, barley, sorghum, agave, sweet potatoes and agricultural waste. Sugarcane will still supply 71% of 2026 ethanol output, while major investments, including Be8’s 220-million-litre wheat-based biorefinery, support diversification.
Passo Fundo, Brazil: Brazil’s ethanol industry is entering a new phase of growth as companies explore a wider range of biomass feedstocks, including wheat, barley, sorghum, agave, sweet potatoes and agricultural waste, to expand biofuel production beyond its traditional dependence on sugarcane and corn, Reuters reported.
The shift marks what industry leaders describe as a “third wave” of biofuel innovation in the world’s second-largest ethanol market, where new technologies are creating opportunities for different agricultural sectors to participate in the country’s energy transition.
Brazil’s ethanol industry, valued at about $20 billion, has long relied on sugarcane and, more recently, corn to supply fuel for the country’s large fleet of flex-fuel vehicles. However, companies are now investing in alternative biomass sources to diversify production and strengthen energy security.
According to Alexandre Breda, low-carbon technology manager at the Brazilian unit of Shell Brasil, the future of the energy transition will depend on multiple feedstocks rather than a single raw material.
He said sugarcane, corn, agave, wheat and other biomass sources would all have a role to play in meeting future fuel demand and supporting decarbonisation efforts.
The growing focus on alternative feedstocks comes as biofuels help cushion Brazilian consumers from global fuel price volatility. While international energy markets have faced sharp fluctuations, Brazil’s widespread use of ethanol-blended fuels has helped moderate increases in domestic fuel prices.
Government projections indicate that sugarcane will remain the dominant feedstock, accounting for 28.5 billion litres, or about 71 per cent, of Brazil’s ethanol production in 2026. Corn-based ethanol is expected to contribute 11.2 billion litres, while production from wheat, soybeans and other cereals is also set to expand.
One of the most significant investments is being made by Be8, Brazil’s largest biodiesel producer. The company is investing 1.7 billion reais in a biorefinery in the southern state of Rio Grande do Sul that will use wheat and other winter grains to produce biofuels.
Scheduled to begin operations in March 2027, the facility is expected to become Brazil’s first large-scale ethanol plant based on wheat and winter crops, with an annual production capacity of 220 million litres.
Be8 founder and chief executive Erasmo Carlos Battistella said the development represents a new chapter for Rio Grande do Sul, which was largely absent from the country’s earlier ethanol expansion driven first by sugarcane and later by corn.
Industry observers believe the emergence of new biomass feedstocks could boost demand for crops such as wheat and sorghum, much as ethanol production previously transformed the markets for sugarcane and corn. The diversification is also expected to create new opportunities for farmers while strengthening Brazil’s position as a global leader in bioenergy and renewable fuels.
As investments spread beyond traditional sugarcane regions, Brazil’s expanding biofuel sector is increasingly being viewed as a model for how multiple biomass resources can contribute to cleaner transportation fuels and a more resilient energy system.
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Source : ChiniMandi
