Sep 03, 2025
New Investments in Brazil Corn Ethanol to Reach R$ 23 Billion
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Although high interest rates pose a challenge to the development of new projects, the corn ethanol sector in Brazil maintains the pace of investments. New investments announced in July are expected to drive a growth of more than 50% in production by the harvest of 2026/27. According to a survey by Itau BBA, corn ethanol production will go from 8.2 billion liters in 2024/25 to 12.1 billion liters in two years.
In 2024, Itau BBA identified 22 corn/grain ethanol projects including new construction and/or expansion. Of those 22 projects, three have already been completed, 13 are under construction or in the pipeline, and six have been postponed. The postponed projects were all from firms that would debut in the sector, which highlights the challenges given the high cost of capital in Brazil.
There are currently 21 active projects totaling an investment of around R$ 23 billion ($4.25 billion) with about R$ 15 billion disbursed between 2025 and 2027. These projects would utilize 14 million tons of grain per year to produce 6.1 billion liters of ethanol. Among the active projects, 12 are already under construction with the other nine in the planning phase.
Many of the new projects will be geographically dispersed especially in the MATOPIBA region (the states of Maranhao, Tocantins, Piaui, and Bahia). The consumption of ethanol in these northeastern Brazilian states is still relatively low. Decentralization can contribute to expanded use of biofuel in North and Northeastern regions, in addition to promoting the cultivation of corn and other grains in these locations.