Brazil’s ethanol seeks bigger role in energy transition

“Ethanol has proven to be highly efficient, significantly reducing carbon emissions compared to fossil fuels,” said UNICA president, Evandro Gussi. Ethanol can cut carbon emissions by up to 90% relative to gasoline.

At a recent event in Paris, industry leaders discussed strategies to increase the global biofuel supply fourfold by 2035. In this scenario, Brazil is seen as having the greatest expansion potential through the conversion of degraded pastures into sugarcane fields, gains in crop productivity, and greater use of corn for ethanol production. “There are also significant investments in biomethane, which will further expand the sector’s energy offering,” Mr. Gussi said.

Brazil is the world’s largest sugarcane producer, with 621.88 million tonnes harvested in the 2024/25 crop year, and the second-largest ethanol producer, having posted a record output of 34.96 billion liters in the last season.

On the demand side, maritime transportation is expected to drive higher ethanol consumption. The International Maritime Organization (IMO) has set targets to cut net emissions from international shipping by 20% by 2030 and reach net-zero emissions by 2050. Companies like Compagnie Maritime Monégasque and Wärtsilä are developing ethanol-powered vessels.

Japan is also expected to boost demand. The country plans to blend 10% ethanol into gasoline by 2030 and 20% by 2040, increasing annual consumption from 1.5 billion liters to 4.45 billion liters. In March, UNICA and the Institute of Energy Economics, Japan (IEEJ) signed an agreement to enhance technical collaboration on sustainable biofuels.