Ethanol production is expected to hit a record high in the 2026/27 harvest.

The Brazilian bioenergy sector is expected to start the 2026/2027 harvest with record ethanol production. The projection, released this Monday (March 16) by the entities Bioenergia Brasil, União Nacional do Etanol de Milho (Unem) and União da Indústria de Cana-de-Açúcar e Bioenergia (Unica), indicates the entry of almost 4 billion additional liters into the market, a volume close to the total amount of gasoline imported by Brazil in 2025.

According to the organizations, the increase in supply occurs in a context of volatility in international oil prices and reinforces the role of ethanol as a competitive alternative to fossil fuels, without the need for subsidies or impact on public finances.

Currently, ethanol — considering both hydrated and anhydrous forms — already represents more than 30 billion liters of gasoline equivalent in the country's fuel matrix. In recent years, the biofuel has remained below 73% parity with gasoline in much of the consumer market, a level considered economically advantageous for supply.

According to the sector, this competitiveness generated approximately R$ 5 billion in savings for consumers in 2025 and more than R$ 140 billion accumulated since the introduction of flex-fuel vehicles in Brazil.

The organizations highlight that this performance is the result of long-term public policies aimed at developing biofuels. These include the National Alcohol Program (Proálcool), created in the 1970s, the recent increase in the mandatory ethanol blend in gasoline from 27% to 30%, as well as initiatives such as the Fuel of the Future Program, the Green Mobility and Innovation Program (Mover), and RenovaBio.

According to the sector, this regulatory environment has contributed to an approximately 30% growth in production capacity in recent years. Currently, more than 20 new plants have registered construction notices with the National Agency of Petroleum, Natural Gas and Biofuels (ANP).