Brazilian fleet is ready for increased ethanol blending, says Crea-SP.

The recent decision by the National Energy Policy Council (CNPE) to increase, initially for 180 days starting last Saturday (1st) – the concentration of ethanol in gasoline to 32% – called E32, generates positive prospects for agribusiness by boosting the sugarcane and bioenergy chain and the production of ethanol from sugarcane and corn. The objective is to reduce Brazil's need to import gasoline. However, the change requires technical attention regarding the implications for supply in the field and the adaptation of the different types of engines on the market. The new 32% ethanol dosage in gasoline has direct repercussions for agribusiness, boosting the sugarcane and biofuel sectors. The Union of the Sugarcane and Bioenergy Industry (Unica) estimates that E32 will generate an additional demand of between 540 million liters of anhydrous ethanol in the first six months, potentially reaching up to 1 billion liters throughout the entire harvest. According to agricultural engineer Glauco Eduardo Pereira Cortez, director of professional relations at Crea-SP, the measure benefits both the traditional sugarcane chain and corn ethanol production. “This additional demand helps absorb the ethanol supply resulting from the 2026/2027 harvest, relieving pressure on mills to sell the product and encouraging production to be directed towards biofuel in the domestic market, in addition to strengthening the decarbonization agenda,” he points out. From the perspective of planning for the sugar-energy sector, the measure is seen as a positive step towards consolidating the product's presence in the national energy matrix. The initial 180-day period established by the regulation serves as an important window for technical monitoring to align the agricultural sector's supply with domestic market consumption. “Raising the percentage to 32% is a positive measure for the biofuel agenda in Brazil. It is a public policy that directly contributes to market equilibrium and opens up space for strengthening the sugarcane and corn production chains,” says Cortez. Regarding supply capacity, the director's assessment is that the country has complete productive security to sustain the increase without risk of shortages. The growth of corn processing plants in the Midwest, coupled with high agricultural productivity in the Center-South, guarantees support for the new percentage. “Brazil has all the conditions to maintain this blend. The sector's problem is not production, but demand, as we have stored fuel and sufficient volume even for export. This increase serves to clear the stock and, in the long term, tends to stimulate new investments in productivity, milling, and expansion of plants,” he concludes. “For most of the Brazilian fleet, which is equipped with flex-fuel technology, the new blend will not pose risks of damage or mechanical failures to engine parts, since these vehicles are designed to run on gasoline, ethanol, or a mixture of the two in any proportion,” explains mechanical engineer Marcelo Perrone, administrative director of Crea-SP.

This text was translated by machine from Brazilian Portuguese.