Sep 16, 2026
Surging Corn Ethanol in Brazil Needs More Eucalyptus for Energy
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
The rapid expansion of the corn ethanol industry in Brazil is increasing the demand for the biomass supply needed to supply energy for the ethanol facilities. For most of the corn ethanol facilities in Brazil, eucalyptus biomass supplies most of the energy needed to run the plants.
According to the report "The Biomass Challenge for Corn Ethanol" prepared by the Agro do Itau BBA Consultancy, in Mato Grosso alone the investments necessary for the expansion of energy forest can vary between R$ 7.6 billion and R$ 14.3 billion in the coming years depending on the evolution of the operational efficiency of industrial plants. The installed capacity of corn ethanol production in Brazil is expected to go from 10.9 billion liters in 2025 to 25.3 billion in 2030. In Mato Grosso, the main national hub, the volume is expected to advance from 6.9 billion to 11.9 billion for the same period.
In Mato Grosso, to sustain a production of approximately 12 billion liters by 2030, the state would require approximately 383 thousand hectares of eucalyptus to meet the energy needs of the industry. Currently, the estimated area is about 165 thousand hectares, which indicates the potential need to add 218 thousand hectares of new energy forest.
Currently, the biomass supply matrix is a mix of legally authorized land clearing and renewable sources and planted forest. In June of this year, Mato Grosso established rules for the gradual reduction and subsequent elimination of the use of biomass from native vegetation by large consumers. The state government is prioritizing sustainable sources of supply, sustainable forest management, and other renewable alternatives.
The pressure on biomass supply will not just come from ethanol. Biomass is also used by storage units, brain dryers, and other agro-industrial segments. The use of forest biomass can strengthen the sustainability credentials of Brazilian corn ethanol. The combination of second-crop corn and renewable biomass in the industrial process tends to increase the competitiveness of the product in markets that value lower carbon fuels.