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In 2024, the production of biofuels in Brazil reached at ***barrels of oil equivalent per day, the highest value during the period under consideration. Brazil is the second largest biofuel producer worldwide, ranking only behind the U.S.

What are biofuels and where do they come from?

The most common types of liquid biofuels are biodiesel and ethanol. Contrary to fossil fuels, these fuels are produced from renewable sources, such as food crops, vegetable oils, and animal fats. In the case of Brazil, for example, ethanol is produced mainly out of sugarcane, while in the U.S. corn is the main crop utilized. When it comes to biodiesel production, soybean oil is by far the main feedstock used in Brazil.

The biofuels market in Brazil

As in many South American countries, biofuel consumption in Brazil is closely associated with that of conventional fuels, as legislation requires the addition of a minimum percentage of ethanol to commercial gasoline and biodiesel in commercial diesel (although mandated blends vary country by country). In addition, nearly **** million cubic meters of ethanol fuel were sold directly to consumers in 2020. With the majority of cars in Brazil being of the so-called flex variety – meaning they can run on any blend of ethanol and gasoline – the former is frequently the most economically advantageous alternative.