Brazil's Corn Ethanol Boom: A Fuel Revolution on the Horizon

Brazil's corn ethanol production is anticipated to almost double by 2032, reaching 16 billion liters annually, driven by industry expansion. Citi reports that Brazil will increase its corn ethanol output from 6.3 billion liters to 9.5 billion liters. New plants and construction projects promise substantial industry growth.

Brazil is set to dramatically increase its annual corn ethanol production, nearly doubling output to an estimated 16 billion liters by 2032, according to a report from Citi. This forecast reflects a rapid industry expansion that could solidify Brazil's position as a major producer of biofuel.

Currently, Brazil has 22 operational corn ethanol plants, with an additional 12 facilities under construction and another nine approved. Citi highlights corn's advantages over sugarcane in ethanol production, such as longer storage life and reduced transportation costs, enabling production in remote areas and ensuring a consistent ethanol supply, particularly during the sugarcane off-season.

The National Corn Ethanol Union (UNEM) has projected a 30% rise in corn ethanol production in Brazil's southern central region for the current season compared to the previous year. UNEM anticipates exceeding initial expectations by 200 million liters, culminating in a total output of approximately 8.2 billion liters.

(With inputs from agencies.)