Inpasa, a Brazilian biofuel producer, wants to decentralize the supply of biofuels in Brazil.

Inpasa's Vice President of Trading Gustavo Mariano Oliveira stated that the company will decentralize its supply of biofuel by focusing on regions such as Brazil's North-East and Northeast.

Inpasa produces most of its ethanol in central Brazil from corn, whereas sugarcane ethanol has been the dominant biofuel in Brazil's Southeast region and in Sao Paulo (the main fuel-consuming State).

Sugarcane fuel production is stagnating, but corn-based ethanol continues to grow. Brazil's government expects corn-based ethanol to increase by 60% between 2025-2035, to 16,3 billion liters.

Oliveira, in an interview with a Brazilian newspaper on Tuesday, said that the goal was to decentralize Brazil's ethanol production hubs. He also urged consumers to use as much biofuel in their light engine vehicles.

Inpasa announced at the end of the month that it would join forces with Amaggi, an agricultural group and leading grain processor in Brazil, to build three corn ethanol factories in the state Mato Grosso.

Oliveira added that Inpasa does not only rely on corn for ethanol expansion in Brazil's North-East and North, but also uses sorghum.

He added that sorghum is more resilient and therefore a better alternative for regions where climates are more volatile.

He said, "It is a complementary concept, which is based primarily in regions with a different climate diversity from the Brazilian Central-West's climate stability."

Inpasa has achieved greenhouse gas reductions of 92% in Paraguay where it began producing corn ethanol. This makes its ethanol a viable option for buyers who are looking for greener options for fuel, Oliveira explained.

He said: "I think we'll be exporting a lot more ethanol out of Brazil. Not just from corn but also sugarcane." "South American ethanol will become more popular on other markets around the world."

(source: Reuters)