Corn ethanol grows 20% per year and makes Brazil the second largest producer in the world

On the side of BR-163, in Sinop, Mato Grosso , a structure of towers, pipelines, and steel tanks resembles a futuristic setting. The line of trucks loaded with corn hints at what the signs indicate: the site is the largest corn refinery for ethanol production in Latin America. In 2024, Inpasa processed 3.7 billion liters—almost half of the grain-based biofuel produced in the country. In the overall ethanol market, including sugarcane , its share was 12%.

According to the Sugarcane and Bioenergy Industry Union (Unica) , 2024 was the year with the highest ethanol supply in the country, with 36.8 billion liters produced—4.4% more than the previous year. Corn ethanol's share is growing, and the National Corn Ethanol Union (Unem) expects to reach 10 billion liters in the 2025/2026 harvest, 20% more than the previous harvest, which was 8.19 billion liters. This already places Brazil as the world's second-largest producer, behind only the US.

Brazil has the resources for this, as it is the third-largest corn producer in the world. Over the last ten years, national production has increased by 40% and currently stands at around 130 million tons, according to the National Supply Company (Conab) .

Corn seduces producers with additional benefits: it can be stored, which facilitates production planning, it can be grown in up to three harvests, and it produces valuable by-products used in animal feed, in addition to oil.

The Inpasa unit produces 1 million tons of Distillers Dried Grains with Solubles (DDGS) - a high-value-added protein alternative to soybean meal for animal feed -, 105,000 tons of oil and 804.1 GWh of bioelectricity.

At Inpasa, the unloaded corn is crushed, hydrated, and fermented with yeast in giant vats. After milling, the oil is separated by centrifugation, producing anhydrous and hydrated ethanol, as well as DDGS. A digital platform integrates operations, monitoring waste and disposal in real time.

Biomass is transformed into electricity , which is consumed at the units, with the surplus fed into the National Integrated System (SIN). "Mato Grosso, as a strategic agricultural hub, remains central to our plans: in addition to Sinop and Nova Mutum, we are evaluating new opportunities to strengthen our vertical integration and logistical efficiency," says Flávio Peruzo Gonçalves, Vice President of Business and Origination at Inpasa.

The Sinop unit employs 1,200 professionals. In total, there are 2,800 in Brazil, including the units in Nova Mutum (MT) , Sidrolândia (MS) , Dourados (MS) , and Balsas (MA) . A new plant is being launched in Luís Eduardo Magalhães (BA) , with an investment of R$4.9 billion.

The refinery's arrival in 2018 further boosted corn production in the region, as all the grain destined for milling is purchased from local producers. To this end, the company requires social and environmental standards and encourages sustainable practices in its production areas.

"The plant absorbs a significant portion of the local corn supply and stimulates the cultivation of the second crop, offering liquidity and predictability to producers, which strengthens agriculture, generates income and boosts logistical development," says Gonçalves.

Previously, most of the corn from northern Mato Grosso was exported, a logistical challenge that also hindered the expansion of the second harvest. The refinery provides producers with greater crop liquidity and encourages the development of technical skills in the fields. "Before, we planted corn just to have straw in the soil. With the refinery, corn gained value, and we began investing in seeds, fertilizer, and technology. It was a door that opened," says producer Invaldo Weiss, from Santa Carmem .

Mato Grosso leads in corn milling for ethanol, with 12.5 million tons, according to the Mato Grosso Institute of Agricultural Economics (Imea).

It is ahead of Mato Grosso do Sul (3.51 million) and Goiás (2.1 million). Data from Unem indicate that 10 of the 24 corn ethanol biorefineries in operation in the country are on Mato Grosso soil; 16 have construction authorization and 16 are planned.

In Sorriso , FS processes 4.8 million tons of corn and produces 2.3 billion liters of ethanol, in addition to 1.7 million tons of DDGS. New business is emerging. A corn supplier to Inpasa, Weiss and his partners invested R$1 billion in Etanol Verde do Mato Grosso (Evermat), which will begin processing 1,200 tons of corn per day in March. "We already have 1 million bags in stock," says Weiss.