Brazil plans to raise the ethanol blend in gasoline from 27.5% to 30% to support its booming biofuel industry. Technical tests confirm no engine harm, and final approval from the National Energy Policy Council is expected this year.
The 30% ethanol blend will increase demand by 1.3 billion liters annually, reducing gasoline imports and potentially lowering fuel prices. Brazil may even export excess gasoline.
The rise in biofuel supply is driven by new corn-based ethanol plants, though most production still comes from sugar cane.Datagro President Plinio Nastari expects some sugar-cane plants to shift to ethanol production due to rising demand. This is likely for mills outside São Paulo, where high export costs make sugar less profitable.
