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Alternative Fuel

Brazil Hikes Ethanol Blending Requirements to 32%

Industrial Info Resources is tracking 217 active ethanol plants in Brazil and 1,169 ethanol projects in Brazil's Alternative Fuels Industry, representing a combined estimated investment value of US$25 billion

Released Tuesday, October 20, 2026

Brazil Hikes Ethanol Blending Requirements to 32%

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

Summary

Brazil increased its mandatory ethanol content in regular gasoline to 32% for 180 days, with the possibility of one extension. Brazil is the world's second-largest ethanol producer.

A Growing Market

Brazil is one of the world's largest producers of ethanol, with an industry that has been developing over the last 50 years. In August, its federal government increased the mandatory blend of anhydrous ethanol in gasoline from 30% to 32% for 180 days, with the possibility of extending it for the same period once more.

The increase aims to reduce Brazil's dependence on gasoline imports amid elevated international prices driven by conflict and the shipping disruptions in the Strait of Hormuz. The government estimates that maintaining the 32% blend could reduce gasoline imports by 900 million liters per year.

At the same time, the new mandatory blend is heightening demand for anhydrous ethanol, increasing demand for domestic producers.

In Brazil, ethanol is consumed in two forms: anhydrous ethanol, which is blended directly into gasoline, and hydrous ethanol, which is sold at gas stations as a standalone fuel for flex-fuel and ethanol-powered vehicles.

Industrial Info Resources is tracking 217 active ethanol plants in Brazil and 1,169 ethanol projects in Brazil's Alternative Fuels Industry, representing a combined estimated investment value of US$25 billion.

Subscribers can find more information on these developments in Industrial Info Resources' Global Market Intelligence (GMI) Alternative Fuels Plant and Project databases, which offers details--including construction schedules, investment values and necessary equipment--in a series of plant profiles and project reports in Brazil.

According to Industrial Info Resources data, 35 ethanol-related projects are scheduled for completion in 2026 with a combined investment value of US$1.36 billion. Subscribers can consult a list of project reports.

Rooted in Sugar

Brazil is the world's largest producer of sugarcane-based ethanol, supported by a growing corn ethanol industry.

According to the Energy Research Office (EPE), Brazil produced 29.7 billion liters of sugarcane ethanol and 7.7 billion liters of corn ethanol in 2024. By 2025, sugarcane ethanol production shifted to 26.7 billion liters, while corn ethanol output rose to 9.5 billion liters.

Brazil increased its mandatory gasoline ethanol blend from 25% to 27.5% in 2015. The mandate was subsequently raised to 30% on August 1, 2025, before temporarily rising to 32% on August 1, 2026.

Brazil also is assessing the possibility of increasing the blend to 35%. If implemented, E35 would require greater volumes of anhydrous ethanol, providing a stronger incentive for domestic biofuel production.

Key Takeaways
  • Brazil's higher gasoline blending requirement encourages demand.
  • The country is considering a further increase to 35%.
  • Industrial Info Resources is tracking 217 active ethanol plants in Brazil.

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news, and analysis on the industrial process, manufacturing, and energy-related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified, and verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).
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