Inpasa's Strategic Shift: Decentralizing Biofuel Supply

Inpasa is planning to expand its ethanol production in Brazil's North and Northeast regions. With the use of corn and sorghum as primary sources, the company aims to decentralize biofuel supply. Inpasa also aims to enhance its export potential, contributing significantly to global markets.

Inpasa, a major ethanol producer, is strategically shifting focus to increase demand in Brazil's northern and northeastern regions, according to Gustavo Mariano Oliveira, Vice President of Trading at the company. This move is part of an effort to decentralize the country's biofuel supply.

Traditionally dominated by sugarcane, ethanol production in Brazil's Southeast, particularly São Paulo, is witnessing new competition as Inpasa pushes corn-based ethanol. Central Brazil has seen corn as a catalyst for ethanol's growing production while sugarcane growth stagnates. Brazil's government forecasts a 60% rise in corn-based ethanol output from 2025 to 2035.

Oliveira revealed plans for a collaboration with Amaggi, an agricultural group, to create new corn ethanol plants in Mato Grosso. Additionally, sorghum is being employed to expand ethanol's reach into regions with diverse climates. Inpasa's operations in Paraguay have achieved significant greenhouse gas reductions, aligning with global demand for greener energy solutions.

(With inputs from agencies.)