Agriculture is responsible for 60% of the renewable energy used in Brazil

A study by the Getúlio Vargas Foundation (FGV) highlights the crucial role of Brazilian agribusiness in generating renewable energy for the country. According to the study, developed by the institution's Observatory of Knowledge and Innovation in Bioeconomy, the sector accounts for 60% of clean energy sources.

Without this contribution, the Brazilian renewable energy matrix would fall from 49% to around 20%, closer to the global average, which is around 15%.

The survey reinforces that the participation of agriculture differentiates Brazil from other agro-industrial powers in terms of energy sustainability. Although it is a significant energy consumer, the sector accounts for approximately 29% of all energy production used in Brazil.

For Luciano Rodrigues, coordinator of the bioenergy center at the FGV Observatory, the study reveals a new dimension of Brazilian agribusiness, which is already synonymous with productivity, record exports, and food security: its strategic relevance in the energy transition.

"This leading role isn't limited to the amount of clean energy available in the country or the presence of biofuels in the transportation sector—it's also reflected in the destinations of agricultural bioenergy, which is the main source of energy for several industrial sectors," he says.

Agriculture contributes through sources such as sugarcane ethanol, soybean biodiesel, biogas from agricultural waste, firewood from planted forests and bleach (residue from cellulose production), among other byproducts.

History shows diversification of renewable energy sources in agriculture

In a historical review of agricultural contribution to energy supply, the study highlights the growing diversification of bioenergy sources in the country. In the early 1970s, most of the sector's bioenergy came from firewood and charcoal, which accounted for over 40% of the total.

This configuration began to change in the 1980s, when the production of sugarcane biomass derivatives intensified, driven by the implementation of the National Alcohol Program (Proálcool).

Between 1988 and 2003, agribusiness's share of the national energy matrix remained relatively stagnant, hovering around 20%. There was, however, significant growth in the supply of lye, which increased from 1.2 million to 3.7 million tons of oil equivalent (TOE).

On the other hand, the performance of sugarcane was negatively impacted by the ethanol crisis in the late 1980s and by fluctuations in production during the period of deregulation of the sector.

Starting in 2003, this trend was largely reversed. The following two decades were marked by a strong expansion and diversification of renewable energy sources generated by agribusiness.

The supply of energy from sugarcane nearly tripled, driven by the popularization of flex-fuel vehicles and the expansion of bioelectricity generated from sugarcane bagasse. Firewood and charcoal production also doubled during the period, reflecting the strengthening of energy forestry as a commercial activity. Bleach, in turn, grew nearly 300%, accompanying the expansion of the pulp and paper industry.

As a result, agricultural bioenergy, which in 1970 accounted for 6.5 million TOE—a 9.7% share of the Brazilian energy matrix—reached 91 million TOE in 2023, equivalent to a 29.1% share. This trajectory peaked in 2020, when its contribution reached 30.1%.

In addition to the launch of Proálcool in the 1980s and the introduction of flex-fuel engine technology, the advancement of bioelectricity and the establishment of the National Program for the Production and Use of Biodiesel (PNPB) are other key moments that drove this growth.

The authors show that the trajectory of renewable energy generated by agriculture was one of the pillars of Brazil's energy transition. Sectors such as food and beverage, pulp and paper, ceramics, and ferroalloys already rely primarily on energy derived from agricultural biomass. In some cases, it accounts for more than 70% of the industrial energy matrix.

Brazilian agriculture also stands out for its energy efficiency

In terms of consumption, the analysis also reveals that the Brazilian agricultural sector boasts superior physical and economic energy efficiency than the world average. This advantage is attributed to structural factors intrinsic to Brazil, such as its favorable tropical climate, high productivity per hectare, and the predominance of extensive rainfed production systems, which require less reliance on irrigation and intensive climate control.

According to the survey, the aggregate energy consumption by added value of Brazilian agriculture is 1.2 GJ per US$ 1,000 produced, lower than the global average of 1.5 GJ, with energy representing only 4.2% of the sector's aggregate costs, below the global average of 5.7%.

One point of observation, according to the authors, on the other hand, is the high dependence on fossil fuels, especially diesel oil, which accounts for 73% of the direct energy consumed in the field – a percentage higher than the world average of 70%.

"Agribusiness in Brazil has several characteristics that favor the use of clean energy throughout its production chain: the tropical climate, extensive production with less irrigation, high productivity per hectare, more than one harvest per year, and technology and management adapted to the country's soil and climate conditions," says Rodrigues.

"However, this advantage coexists with a vulnerability: dependence on diesel. This makes the sector sensitive to external shocks, such as fluctuations in oil prices or geopolitical crises," explains the researcher.

The study was based on data provided by the National Energy Balance (BEN), the main official instrument for monitoring the evolution of the Brazilian energy matrix.

In addition, databases from the Food and Agriculture Organization of the United Nations (FAO), the Brazilian Institute of Geography and Statistics (IBGE) and the Energy Research Company (EPE) were used, as well as global models such as GTAP-Power (expansion of the GTAP database – Global Trade Analysis Project – with a focus on electricity).