Brazil Energy Biofuels
Brazil’s Ministry of Mines and Energy (MME) and Energy Research Office (EPE) project US$25.8 billion in biofuels investments between 2027 and 2036, according to the Biofuels and Synthetic Fuels Report of the Ten-Year Energy Expansion Plan (PDE 2036), released in October 2026. The projected investment profile reflects a market expanding beyond its traditional sugarcane ethanol and biodiesel base, with significant capital directed toward new production capacity for sustainable aviation fuel (SAF) and renewable diesel (US$7.1 billion), biomethane (US$5.6 billion), and corn ethanol and other cereals (US$4.6 billion). This diversification points to opportunities in emerging fuel pathways as well as in the modernization and expansion of established production chains. Continued investment in sugarcane plantation development (US$4.4 billion) also underscores the importance of feedstock availability and agricultural productivity to sector growth. The estimates cover production facilities and associated agricultural investments but exclude distribution infrastructure and operating expenditures. Including investments associated with sugar production increases projected capital expenditures to approximately US$31.2 billion.
Several policies and market developments are expected to support this expansion. Brazil’s ethanol production is projected to grow through 2036, with corn ethanol increasing its share to approximately 40% of total output. Biomethane demand is expected to rise as decarbonization requirements for natural gas suppliers progressively increase, potentially reaching a 10% target by 2036. In the aviation sector, domestic SAF blending requirements will begin in 2027 and increase over time, while announced production projects are expected to cover only part of anticipated demand. The PDE also identifies potential for bioenergy with carbon capture and storage (BECCS), particularly at ethanol facilities, where fermentation generates concentrated biogenic CO2.
These developments create opportunities for U.S. exporters of industrial processing equipment, engineering and project development services, biogas upgrading systems, SAF production technologies such as Alcohol-to-Jet, catalysts, automation and digital solutions, and carbon capture technologies. Although the investment projections are indicative rather than committed projects, they provide a useful indication of the technologies and capabilities Brazilian producers may seek as they develop new facilities and upgrade existing operations.
For more information about opportunities in the energy industry for U.S. companies in the Brazilian market, please contact Igly Serafim, Commercial Specialist at the U.S. Consulate São Paulo, at igly.serafim@trade.gov.
To explore additional industry sector intelligence and insights on the Brazilian market, please see Brazil Published Market Intelligence.