In this year 2024, Brazil’s bioenergy sector has shown a strong performance, with significant investments and technological progress. In the case of the biofuels sector, there have been investments worth $1 billion, stimulated by the need for the energy transition. Companies invested about R$42 billion this year.
In this context, and looking to the future, ethanol production should represent approximately 60% of planned investments for the period up to 2034, with a particular focus on building new plants and modernizing existing plants. In the case of the biodiesel sector, driven by progressive mandatory blending mandates, the estimated investments amounted to R$14.5 billion in investments and R$77.5 billion in operating costs.
2025 scenario
For 2025, the bioenergy sector will face several important challenges. Sugarcane and other agricultural products used in biofuel production face competition from other sectors that use the same raw materials. There is also the issue of climate change, which is generating droughts and floods, which threatens to affect agricultural production and thus the supply of biofuels.
High production costs pose another challenge, including investments in infrastructure and technology for biofuel production. There is no doubt that there is a great need to invest in new technologies with the aim of increasing production and efficiency.
Merian Toomey-Canal-Journal of Bioenergy
