Ethanol, biodiesel and new fuels could expand space in Brazil by 2035
A CNI study points to four biofuels with the potential for a larger market in the country, two already in the matrix and two new.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM TIMES BRASIL · 2 MIN
By 2035, four biofuels could gain more market share in Brazil. The assessment is part of a study by the National Confederation of Industry (CNI), according to Times Brasil, and brings together fuels that are already part of the matrix with others that are still new.
Two of the four are already in the matrix: ethanol and biodiesel. According to Times Brasil, the potential of these two lies in expansion, that is, in expanding the participation they already have.
The other two are new: green diesel and SAF, an acronym for sustainable aviation fuel. According to the report, both are linked to new demands and stand out for their lower carbon emissions.
What is at stake is the combination of two agendas: the environmental one, which calls for fuels with fewer emissions, and the economic one, which depends on who produces it and how much the market is willing to pay. The available facts do not provide values, volumes or schedules for each fuel.
From the perspective of an open market, the central point is to let demand define which alternatives prosper, with predictable rules and without choosing winners in advance.
What changes for the investor
For those who invest, the study suggests a long-term horizon, with the potential for more markets for ethanol, biodiesel, green diesel and SAF by 2035. This could affect companies in the production and distribution chains of these fuels, but the effect depends on volumes, costs and rules that the available data do not yet detail. There is no indication of price or asset here; The most useful thing is to monitor the sector's upcoming numbers and the decisions that transform them into concrete demand.
Automatically translated from Portuguese.
