Report: Ethanol production in Brazil to increase 9% in 2018

By Erin Voegele | August 30, 2018

A report recently filed with the USDA’s Foreign Agricultural Service’s Global Agricultural Network provides an update of Brazil’s biofuel industry, predicting the country’s ethanol production will reach 30.755 billion liters (8.12 billion gallons) this year, up 9 percent when compared to last year.

The report gives an overview of Brazil’s RenovaBio biofuels policy, which aims to help the country meet greenhouse gas (GHG) reduction goals. Brazil currently aims to reduce its GHG emissions by 37 percent by 2025 and by 43 percent by 2030, when compared to a 2005 baseline. Regulations for the program are currently being drafted.

The report states Brazil’s ethanol mandate currently remains at 27 percent, a level it was set at in March 2015. Similarly, the policy has not yet made any changes to the 600 million liter annual ethanol import tariff rate quota, which is currently set to be reevaluated in September 2019.

Brazil is expected to produce 30.755 billion liters of ethanol this year, up 9 percent from 2017. Ethanol production or fuel use is expected to reach 27.805 billion liters, up 8 percent from last year. Approximately 61 percent of the sugarcane crop is expected to go to ethanol production this year, up from 53.6 percent in 2017.

Ethanol production from corn is expected to reach 830 million liters this year, up 305 million liters when compared to 2017. Total cellulosic ethanol production is expected to reach 25 million liters this year, up 8 million liters when compared to 2017. Total domestic demand for ethanol this year is expected to reach 28.72 billion liters this year in Brazil.

Brazil is forecast to export 1.12 billion liters of ethanol in 2018, down 18 percent from 2017. The country is expected to import approximately 2 billion gallons of ethanol this year, up 255 million liters when compared to last year.

A full copy of the report can be downloaded from the USDA FAS GAIN website.