Corn ethanol expansion may require R$ 14.3 billion in energy forests

The rapid expansion of Brazil’s corn ethanol industry is driving a significant demand for biomass to power production plants. According to a report by Itaú BBA, the growth of the sector could require substantial investments in energy forests, particularly in Mato Grosso.

Brazil's installed corn ethanol production capacity is projected to rise from 10.9 billion liters in 2025 to 25.3 billion liters by 2030. In Mato Grosso, the national hub for the activity, capacity is expected to grow from 6.9 billion to 11.9 billion liters during the same period. To meet these energy needs, the industry may face increased competition for eucalyptus, which is also utilized by the paper and cellulose sectors.

In Mato Grosso, the current estimated area of planted eucalyptus is approximately 165,000 hectares. To sustain projected production levels, the state may need to expand this to roughly 383,000 hectares, representing a potential deficit of 218,000 hectares. Depending on the operational efficiency of industrial plants, the required investment for these new energy forests in Mato Grosso could range between R$ 7.6 billion and R$ 14.3 billion.