Brazil Could Soon Require More Ethanol in Gasoline

Written by Amir Richani for IIR News Intelligence (Sugar Land, Texas)

Summary

Brazil could soon increase its mandatory ethanol blend in gasoline from 30% to 32%. The increase would require 1 billion liters of anhydrous ethanol per year and avoid annual carbon dioxide emissions of 552,000 tons. About 33.72 billion liters of ethanol were produced from Brazil's Center-South 2025/2026 sugarcane and corn crops.

Brazilian Leaders Meet With Biofuel Representatives

Brazilian President Luiz Inacio Lula da Silva and Minister of Mines and Energy Alexandre Silveira recently met with biofuel sector representatives in Brasilia who are backing an increase in the required share of anhydrous ethanol in gasoline to 32% (E32). According to Industrial Info Resources data, there are 1,033 active capital ethanol projects in Brazil's Alternative Fuel Industry with a total investment value of US$23.67 billion.

The energy ministry said the proposal would reach the Brazil's National Council of Energy Policy (CNPE) in the coming days.

"These are public policies focused on the country's development. It's about energy security, affordable fuel prices, decarbonization, more jobs, more income, and more national development," said Silveira.

The increase of ethanol content in gasoline to 32% from 30% would increase demand for anhydrous ethanol by around 1 billion liters per year, reduce gasoline imports by around 454 million liters, and avoid 552,000 tons in CO2 emissions.

According to the Brazilian Sugarcane and Bioenergy Industry Association (UNICA), the sector already has the capacity to meet the additional demand for ethanol produced from sugarcane and corn.

"The projected expansion of corn ethanol alone would be sufficient to absorb this increase,with the expectation of 16 new plants coming online in the next twelve months, according to ANP data," UNICA said in April.

Brazil produces anhydrous ethanol, which is mixed with gasoline under a mandatory blend, and hydrated ethanol, which can be used as a standalone fuel.

Brazilian refineries and importers supply gasoline that is blended with anhydrous ethanol before being sold at gas stations.

UNICA said that for the 2024/2025 crop year, Brazil's Center-South region produced 34.96 billion liters of ethanol. Of that total, 26.76 billion liters came from sugarcane and 8.2 billion from corn. Around 22.59 billion liters were hydrated ethanol and 12.37 billion were anhydrous.

And for the 2025/2026 crop year, which ended in March, ethanol production in the Center-South region reached 33.72 billion liters, about 3.56% less than the previous crop year. Some 9.19 billion liters came from corn-produced ethanol. Anhydrous volumes stood at 12.89 billion liters and 20.83 billion liters for hydrated ethanol

Brazil is one of the world's largest ethanol producers and the biggest for sugarcane ethanol.

Key Takeaways

• Brazil could soon increase the mandatory ethanol blend in gasoline from 30% to 32%.
• The 2025/2026 Center-South crop year yielded 33.72 billion liters of ethanol, and 9.19 billion liters came from corn ethanol.

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