E32 is expected to expand the anhydrous ethanol market by more than 6%, says NovaBio.

The approval by the National Energy Policy Council (CNPE) of the increase in the mandatory blend of anhydrous ethanol in gasoline to 32% (E32), this Tuesday (14), has the potential to add between 900 million and 1.05 billion liters of biofuel to the market. The 6.6% increase in the use of ethanol is projected by the CEO of the Association of Sugar, Ethanol and Bioenergy Producers (NovaBio), Renato Cunha. According to him, there is no expectation of any technical problems with the increase in the blend. “The studies already carried out are within the scope of Law 14,993 of 2024 and show that the addition of anhydrous ethanol can be up to 35% and Brazilian production, of around 43.6 billion liters of ethanol per season, will meet the increase in demand.” For the 2026-2027 harvest, the anhydrous ethanol market is estimated to reach 15.7 billion liters, representing 37% of total biofuel production. According to the president of NovaBio, increasing the percentage of anhydrous ethanol in gasoline opens a window of opportunity for growth in demand for production in the Northeast region, which is approaching 2.5 billion liters per year. Furthermore, Cunha emphasizes that reducing the percentage of gasoline in the blend, from 70% to 68%, is disinflationary because it can help keep the prices of fossil fuels, which are more expensive, under greater control. "Anhydrous ethanol can contain or soften adjustments in gasoline prices," he stresses. In this context, concludes the president of NovaBio, increasing the blend allows for a reduction in dependence on gasoline imports, since the greater presence of anhydrous ethanol decreases the need for fossil fuels, especially in a context of unstable oil supply and prices. "Not to mention the environmental gains, with the additional reduction in emissions that cause climate change," he adds. 

This text was translated by machine from Brazilian Portuguese.