MATO GRASSO, BRAZIL — U.S. ethanol exporters could face competition in Brazil from the country’s own corn-ethanol production, a leader of the Brazil’s association of corn ethanol producers (UNAM) told Reuters.
Traditionally, Brazil has produced ethanol from sugarcane, but corn-based production is growing in Mato Grasso state. It’s expected to grow more than 50% this year to 1.4 billion liters.
Most of the increase will come from three new projects in Mato Grasso, Reuters reported, including a facility in Sinop with a capacity of 530 million liters per year.
However, a major obstacle will be infrastructure, said Ricardo Tomczyk, head of UNAM. A road linking the center-west region to a river port in Miritituba, Para state, must be completed.
Brazil is the top export destination for U.S. ethanol, reaching 499 million (out of 1.37 billion gallons total) in 2018.