Brazil is experiencing a rapid expansion in corn-based ethanol production, driven by a recent government decision to increase the national biofuel blending mandate from 13% to 15% by 2026. Traditionally known for its sugarcane ethanol, Brazil is now emerging as the world’s second-largest producer of corn ethanol, with production expected to exceed 6.5 billion liters in 2025, nearly double from just a few years ago. The shift is largely concentrated in the country’s grain-producing central-western states like Mato Grosso, where ethanol plants are now being co-located with corn processing facilities to cut transport costs and maximize output.
The policy change is part of Brazil’s broader strategy to reduce carbon emissions in the transport sector, enhance energy security, and stabilize fuel prices. Analysts highlight that corn ethanol—often produced using surplus grain and powered by biomass—has a smaller carbon footprint when aligned with sustainability practices. Moreover, the boom is generating thousands of jobs, attracting over $5 billion in new investments, and enabling Brazil to export more ethanol to countries like Japan and South Korea, which are ramping up clean fuel imports. However, environmentalists caution that increased corn cultivation could pressure land use and water resources if not managed sustainably. More