Ethanol from Brazil could gain ground with changes in the USA

The possible permanent release of the use of gasoline with 15% ethanol in the United States, the so-called E15, should significantly reduce the North American surplus available for export. With this, Brazil emerges as the main beneficiary of the rebalancing in the international biofuels market, according to a recently released StoneX study.

The survey indicates that, by increasing domestic consumption of corn ethanol, the United States will open up space for other markets to supply global demand.

In this scenario, Brazil, one of the world's largest producers of sugar cane, appears to benefit greatly from this structural movement.

E15 in the US and the global impact
Currently, E15 is banned in the United States during the summer months in much of the country due to environmental restrictions.

The full release of the mixture, in line with an agenda defended by different sectors of the American government and associated with Donald Trump, would increase domestic consumption of corn ethanol, reducing the volume available for export and creating a concrete opportunity for Brazilian ethanol on the foreign market.

In the domestic scenario, Brazil is already experiencing E30 and is moving towards E32, the approval of which was discussed at a meeting held at the beginning of the month.

The sugar and alcohol sector enthusiastically welcomes advances in blending ethanol with gasoline. There is, however, a debate about the effects of this composition on the competitiveness of hydrated ethanol at the pumps, in direct comparison with gasoline.

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Source: CNN