Aug 12, 2025
Brazil has 25 Corn Ethanol Facilities, Could Reach 56 in a Few Years
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
The largest biorefinery in Latin America recently was inaugurated in the state of Maranhao in northeastern Brazil. The facility, located in the city of Balsas, is operated by Inpasa, which is the largest producer of corn ethanol in Latin America, responsible for approximately 48% of Brazil's corn ethanol production. In its first phase of operation, the facility will process 2 million tons of grain (corn and/or grain sorghum) per year and produce 925 million liters of ethanol.
For the 2025/26 growing season, corn ethanol production in Brazil could reach 10 billion liters, up 20% year-on-year. If this rate of expansion is maintained, corn ethanol production could double in less than a decade. Currently, corn ethanol represents 20% of Brazil's ethanol production and that could increase to 40% by 2030.
Ethanol produced from corn is cheaper to produce than from sugarcane due to the current low corn prices. Mato Grosso has the cheapest corn in the world, making it very attractive to produce ethanol. The cost of producing corn ethanol fell 10.5% in 2025 from R$ 2.10 per liter in 2023/24 (approximately $1.45 per gallon) to R$ 1.88 per liter in 2024/25 (approximately $1.29 per gallon). Conversely, the cost to produce ethanol from sugarcane increased 6.3% in 2025 from R$ 2.22 per liter (approximately $1.52 per gallon) in 2023/24 to R$ 2.36 per liter (approximately $1.62 per gallon). The difference between the two types of ethanol expanded significantly, jumping from $0.08 per gallon to $0.33 per gallon.
According to a survey conducted by Patria Agronegocios, Brazil has 25 corn ethanol plants in production. Of this total, Mato Grosso leads with 11 units in production followed by Goias (7), Mato Grosso do Sul (3), Parana (1), Alagoas (1), Sao Paulo (1), and Maranhao (1).
Ten other plants have already received authorization for construction with three for Mato Grosso followed by Rio Grande do Sul (2), Tocantins (2), as well as initiatives in the states of Bahia, Para, and Santa Catarine. The growth projection is even more significant with 20 new units in the project phase with 13 units planned for Mato Grosso, Bahia (2), Para (2), Rondonia (1), Rio Grande do Sul (1), Piaui (1), and Parana (1).
The number of plants in operation or announced should increase by 75% in the coming years to a total of 56. In 2017, the first corn ethanol facility opened in the city of Lucas do Rio Verde in the state of Mato Grosso. In 2013, Brazil used 100,000 tons of corn to produce ethanol. In 2025, Brail will utilize 20 million tons of corn to produce ethanol and that could double in a few years as new facilities come online.
Today, more than 70% of the corn ethanol production is concentrated in the center west region, but that is changing with the arrival of the new facility in the northeastern state of Maranhao. New raw materials such as grain sorghum, wheat, and triticale are also being used to produce ethanol in addition to corn depending on different regions where these crops are adapted.