Jul 02, 2025
Brazil to Increase Ethanol Blend to E30 and Biodiesel to B15
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
The Brazilian National Energy Policy Council (CNPE) approved last week increases in the amount of ethanol blended into gasoline and the amount of vegetable oil used in biodiesel. Starting August 1st, the ethanol blend will go from 27% to 30% and the biodiesel blend will go from 14% vegetable oil (B14) to 15% vegetable oil (B15). The decision seeks to reduce external dependence on fossil fuels and accelerate the energy transition.
The increase in ethanol mixture will reduce gasoline consumption by up to 1.36 billion liters and increase consumption of anhydrous ethanol by up to 1.46 billion liters. With this change, Brazil will no longer be a net importer of fossil fuel and will have an exportable surplus of 700 million liters per year. According to the Energy Research Company (EPE), the new level could eliminate imports of pure gasoline by 2030.
In the case of diesel, Brazil imports 23% of its diesel (pure without biodiesel mixture). The move from B14 to B15 is critical to increase energy security especially since Russia is a major supplier of Brazil's imported diesel.
The change is strategic for producing states such as Mato Grosso which is the second largest ethanol producer after Sao Paulo and the leading biodiesel producer. Mato Grosso is expected to reach 7 billion liters of ethanol production in the 2025/2026 harvest. From January to May of this year, the local biodiesel industry in Mato Grosso grew 12.7% compared to the same period of 2024.
According to the Union of Biodiesel Industries of Mato Grosso (Unibro MT), each percentage point increase can generate up to R$ 10 billion in economic and social benefits. The greater demand for soybean oil strengthens local agriculture.
The Association of Biofuel Producers of Brazil (APROBIO) points out that over the past 20 years, investments in the sector have expanded the production network to all corners of Brazil which allows expanding the mixture even more than what was recently authorized.