Challenges and opportunities of corn ethanol in the energy transition

As corn ethanol continues to expand its role in Brazil’s energy matrix year after year, Catavento launched an initiative aimed at better understanding the factors driving this growth and assessing its implications for decarbonization, energy security, and the broader energy transition.

The initiative combined in-depth research with an extensive stakeholder engagement process. Initially, a comprehensive review of national and international literature and public sources on the topic was conducted. Subsequently, Catavento carried out interviews with representatives from key institutions across the sector, including government agencies, research organizations, producers, and potential off-takers. The process culminated in a high-level roundtable held in April 2026, bringing together more than 40 Brazilian and international stakeholders to discuss the opportunities, challenges, and prospects for the development of corn ethanol within the context of the energy transition.

In addition to curating and moderating the discussions, Catavento consolidated the key insights into an executive presentation, which was subsequently discussed with relevant stakeholders in Brazil and abroad, including multilateral organizations and leading institutions in the fields of energy and sustainability. This additional validation process enabled a deeper analysis and the incorporation of diverse perspectives before the findings were made public.

The robustness of the research and the diversity of stakeholders involved gave rise to a study that synthesizes the initiative’s key messages. The report explores the opportunities, challenges, and actions required to strengthen the long-term contribution of corn ethanol to energy security, competitiveness, and low-carbon development, both in Brazil and in international markets.

The key messages from the study are:

• Brazilian corn ethanol is well positioned to help address the global challenges of decarbonization and energy security, meeting growing global biofuels demand and offering a scalable solution for the energy transition in traditional uses and hard-to-abate sectors (e.g. aviation, shipping, heavy machinery).
• Its business case, based on intermediate cropping, year-round industrial operations, and valuable co-products, strengthens competitiveness and reliability, while BECCS could upscale its decarbonization role through carbon emissions
• At the same time, a wider adoption of Brazilian corn ethanol globally faces challenges, including concerns over land-use change, links to soy, food vs. fuel debate and biomass sustainability, coupled with limited awareness of the second-cropping model.
• Therefore, to unlock its full potential, Brazilian stakeholders should work on strengthening corn ethanol competitiveness and sustainability narratives, focusing on some key priorities, which can be divided into four groups of recommendations:

1. Turn short-term opportunities into a long-lasting outlook;
2. Address existing market challenges,
3. Reinforce and prove its sustainable case in global markets,
4. Improve the market conditions for BECCS development

Check the full study here.

Photo: Jesse Gardner via Unsplash.com