Brazil government increases ethanol mandate in petrol
Brazil’s corn ethanol production surged nearly 31% to 8.19 billion litres in 2024/25, helping meet rising renewable fuel demand. This growth offset stagnant sugarcane ethanol output and enabled the government to raise the ethanol-gasoline blend from 27% to 30%. The policy aims to boost cleaner fuel use and stabilize fuel prices.
The rapid growth of Brazil’s corn ethanol sector has become essential to meeting rising demand for renewable fuel under a new government mandate to increase ethanol content in gasoline.
While ethanol production from sugarcane—historically Brazil’s main source—has stagnated in recent years, corn-based ethanol output has surged, Reuters reported.
According to the sugar and ethanol industry group UNICA, corn ethanol production in Brazil’s centre-south region rose nearly 31% in the 2024/25 cycle, reaching 8.19 billion litres.
Meanwhile, sugarcane ethanol output has remained relatively flat since the start of the decade, despite Brazil being the world’s largest producer of it.
To boost the use of cleaner fuels, the Brazilian government has approved an increase in the required ethanol blend in gasoline—from 27% to 30%. This change will demand over 1 billion additional litres of ethanol annually.
“Thanks to corn ethanol, we’re able to raise the blend to 30%. Without this production increase, implementing the policy wouldn’t have been possible,” aid Guilherme Nolasco, president of the corn ethanol industry group UNEM.
The government initially delayed the decision to raise the ethanol blend, partly due to concerns over potential price hikes.
However, when the measure was finally announced this week, officials promoted it as a step that could actually help lower fuel prices at the pump.
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Source : Biofuels International
