The International Maritime Organization’s (IMO) decision to define the carbon footprint of Brazilian corn ethanol is being viewed by industry executives as a major step that could open maritime transport as an important future market for the fuel.
In May, the IMO established a default carbon intensity value of 20.8 grams of carbon dioxide-equivalent (CO2e) per megajoule for Brazilian corn ethanol. The value applies specifically to biofuel produced from Brazil’s intermediate or second-corn crop, according to a report by The Economic Times.
The figure is substantially lower than the current average greenhouse gas fuel intensity in global shipping, which the IMO estimates at 93.3 grams of CO2e per megajoule.
Industry participants said the move represents an important milestone as the IMO develops regulations aimed at supporting lower-emission fuels for maritime transport.
Gustavo Mariano, Vice President of Trading at Inpasa, described the decision as both historic and symbolic, saying it reinforces the role of Brazilian and South American corn ethanol as a viable option for reducing emissions in shipping.
While Brazil’s ethanol sector has long been dominated by sugarcane-based production, corn ethanol has grown rapidly in recent years. Industry association UNEM estimates that corn ethanol output reached nearly 10 billion litres in the 2025/26 season, up sharply from 2.65 billion litres at the start of the decade.
Industry executives said producers could gain access to premium markets for lower-carbon fuels once biofuels receive broader approval for use in maritime transport.
Rafael Abud, Chief Executive of FS Fueling Sustainability, said the company has made significant investments to lower emissions across its operations. These include the use of biomass, improvements in industrial efficiency and development of a bioenergy with carbon capture and storage project that could eventually make its ethanol production carbon negative.
Executives also said the scale of demand from the global shipping sector means Brazilian second-crop corn ethanol is expected to complement, rather than compete with, other biofuels including sugarcane ethanol and biodiesel.
Mariano added that converting the global bunker fuel market into ethanol equivalent would create demand of nearly 400 billion litres, highlighting the scale of opportunity for sustainable fuels.
