Brazilian corn ethanol receives important signal for entry into the maritime transport market

The International Maritime Organization (IMO) has established an official carbon intensity benchmark for Brazilian corn ethanol, a move that could open new opportunities for the fuel in the global shipping industry. In May, the IMO set a carbon intensity value of 20.8 grams of CO₂ equivalent per megajoule for ethanol produced from Brazil’s second corn crop.

This figure is significantly lower than the average greenhouse gas intensity of fuels currently used in global shipping. According to the IMO, the average carbon intensity of marine fuels stands at approximately 93.3 grams of CO₂ equivalent per megajoule. Market participants view the decision as an important step toward the wider adoption of low-emission fuels in maritime transport.

Representatives of Brazil’s bioenergy sector described the decision as historic, noting that it strengthens the position of corn ethanol as an effective tool for reducing emissions. Corn ethanol production in Brazil has expanded rapidly in recent years, increasing from 2.65 billion liters at the beginning of the decade to nearly 10 billion liters in the 2025/26 season.

Producers are also investing heavily in emissions reduction through the use of biomass, improved industrial efficiency, and carbon capture and storage technologies. These efforts could eventually enable the production of ethanol with near-zero or even negative carbon emissions.

For the agricultural sector, the IMO decision is particularly significant because it creates a new demand channel for corn and corn-based products. Industry estimates suggest that demand from the global shipping sector is so large that corn ethanol is expected to complement rather than compete with other biofuels. A complete conversion of the global bunker fuel market to ethanol could generate demand for nearly 400 billion liters of the fuel.

Tags: Brazil, ethanol, biofuel