Brazil, the largest global producer of ethanol and the third in corn production, will be a protagonist in the industry for the transition to electric cars
Every day, the powerful Brazilian market in the production of ethanol has gained more space in the Brazilian territory. In the 2019/2020 harvest, the National Supply Company (Conab) recorded the highest ethanol production in history, with a total of 35,6 billion liters from sugarcane and corn.
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This 7,5% increase compared to the previous year shows how ethanol has gained space in the country and gives you the chance to position yourself in the face of this expressive movement of ethanol, in order to seek astronomical profits.
Brazil: the largest global producer of ethanol
Brazil is the world's largest producer of sugarcane and, therefore, has great prominence in the production of ethanol. The country has a very important position in the world production of fuel, being in second place in the world ranking. It produces, on average, 400 liters of fuel per day.
In July 2021, positive data on this production was released. A survey coordinated by the National Center for Research in Energy and Materials (CNPEM) announced that sugarcane ethanol produced in Brazil pollutes less than previously thought.
Compared to previous data, the study found a 19% reduction in total biofuel emissions.
And it's not just in ethanol from sugarcane that the country stands out! After all, Brazil is a great power in commodities.
Brazil is the third largest corn producer in the world
Corn has also gained relevant space in the production of biofuel. Brazil is the world's third largest corn producer. The IBGE released, for 2021, a total production projection of 103,5 million tons of corn, reaching a record harvest.
Walking in line with these numbers, the plants that use corn to produce ethanol have expanded their production, along with new investments.
In the new harvest, ethanol production should reach 3,38 billion liters.
The National Corn Ethanol Union (A m) believes that this sector should expand 200% by 2028, reaching 8 billion liters of ethanol per harvest.
Countries like India are studying to expand the use of vegetable fuel and Brazil will be the protagonist
The Indian government's announcement that the country will invest in replacing fossil fuels with ethanol (which costs between R$4,20 and R$4,35 a liter there), as its automotive energy base, generated a real uproar in the sector here in Brazil.
Brazil can transfer its expertise in the use of ethanol to India, which is now the fifth largest vehicle producer in the world (3,4 million units between passenger cars and light commercial vehicles, in 2020) and one of the fastest growing markets in the world (more than 28%, in the first quarter of this year alone), caused a stir.
Despite the fact that the plan announced by the Indians has only one objective: to prepare the sector for electrification, reducing dependence on fossil fuels as electric cars capture ever-increasing shares. Brazilian ethanol has become a light at the end of the tunnel for the turning point of the industry in the moment of transition of the electrification of vehicles
The latest BloombergNEF report points out that while electric models will reach a 30% share of the global market as early as 2030, the same will only occur in India a decade later.
By then, the country should already have implemented a renewable energy model. “In five years, we will have modern electric platforms, while automobiles with combustion engines will gradually begin to be phased out”, explains Mahindra's managing vice president, Anish Shah.
The addition of 20% ethanol to Indian gasoline, until the biennium 2023/24, is a palliative measure, which also aims to hold down inflation, given the increase in oil prices.
Today, Indian gasoline already contains 10% alcohol. “From April 1, 2023, our gasoline will have 20% alcohol added and, for the exclusive use of ethanol, we are creating a complete production chain, generating jobs for farmers and in industrial facilities”, said Indian Petroleum Secretary, Tarun Kapoor, to the Indian Times newspaper.
