Brazil’s Corn Ethanol Output Set To Nearly Double By 2032

Brazil’s corn ethanol production is poised for a major upswing, with forecasts predicting nearly double the output to 16 billion liters by 2032, according to Citi.

Brazil is accelerating growth in its corn ethanol industry, with significant expansion expected in the coming decade. Citi’s forecasts suggest an increase from 6.3 billion liters in 2023-2024 to 9.5 billion liters this season. This surge is supported by the construction of 12 new plants and nine more on the way, enhancing Brazil’s industrial capacity. Corn ethanol outperforms sugarcane ethanol due to better storage and lower transportation costs, making it viable even in remote areas. This development not only maintains supply during the sugarcane off-season but also positions Brazil as a rising force in the global ethanol markets.

Brazil’s expanding corn ethanol industry could alter market dynamics by offering a reliable and cost-effective alternative to traditional sugarcane ethanol. Investors should monitor global demand shifts as Brazil bolsters its ethanol infrastructure, potentially affecting commodity prices and energy strategies.

As global economies pursue sustainable options, Brazil’s surge in corn ethanol production marks a pivotal shift towards renewable energy. This initiative supports international green goals and could see Brazil taking a central role in the global transition to sustainable energy solutions.

Tags: ethanol, demand, corn, Brazil, Production, forecast, output