Ethanol

In the face of challenges of combating climate change, ethanol is emerging as one of the technological paths toward sustainable mobility, as it is the biofuel with the lowest carbon footprint in the world. Currently, in Brazil, ethanol is produced using both sugarcane and corn as raw materials.

Ethanol can be used pure (hydrous ethanol) or blended with gasoline (anhydrous ethanol). Its use plays a critical role in reducing greenhouse gas emissions, improving air quality, and promoting environmental sustainability. Compared to gasoline, ethanol can reduce CO2 emissions by up to 90%.

Since the introduction of flex-fuel vehicles in 2003, until March 2025, ethanol use prevented more than 730 million tons of CO2 from being released into the atmosphere. To achieve a similar environmental benefit naturally, it would take the cultivation of 5.1 billion trees over the next 20 years.

Beyond reducing pollution, ethanol production contributes directly to environmental preservation. Through initiatives like RenovaBio – Brazil’s National Biofuel Policy, which promotes the replacement of fossil fuels with renewable alternatives and demands zero deforestation – the sugarcane and bioenergy industry has advanced toward greater efficiency and sustainability.

In Brazil, corn ethanol production stands out from other countries due to its reliance on second-season corn – accounting for 99% of the corn produced in the Center-South region. This corn is cultivated after the primary soybean harvest. As a result, corn ethanol production in Brazil does not compete with food production.

Only a small share of Brazil’s domestic corn supply is used for biofuel production. In the 2024/2025 harvest season, the corn ethanol sector processed 6.5 million tons of corn, yielding approximately 8.2 billion liters of ethanol. According to projections from the Brazilian Ministry of Mines and Energy (MME), this volume could rise to 14 billion liters by 2033.

Corn ethanol is integrated into a circular economy model, where the full value of the grain is utilized for both bioenergy and food production. Only the starch component is used to produce ethanol, while the remaining proteins and fibers are converted into distillers dried grains (DDG), a high-protein ingredient for animal feed and corn oil. This co-production strategy supports the growth of other rural activities, such as cattle and poultry farming.

In the 2024/2025 harvest, Brazil produced approximately 5 million tons of DDG. By 2033, this volume is projected to double, reaching around 10 million tons. These estimates are based on data provided by ethanol mills participating in the RenovaBio program.

Another important link in the corn ethanol value chain is biomass production – such as eucalyptus plantations – used to generate renewable electricity for ethanol facilities themselves.

Cellulosic, or second-generation, ethanol is produced from agricultural byproducts such as straw and bagasse – residues from sugar and ethanol production. This approach enables greater biofuel output without the need to expand cultivated land.

In the conventional process, only about one-third of the sucrose in sugarcane – extracted from juice and molasses – is used for ethanol production. The remaining energy potential is stored in bagasse and straw. Therefore, with the development of new technologies, it has become possible to use this energy to produce ethanol, resulting in what is known as cellulosic ethanol.

By utilizing the whole plant, cellulosic ethanol can boost biofuel yields by up to 50% using the same land area.