In a significant move towards energy self-sufficiency and environmental sustainability, the Brazilian government announced on June 25 that it will increase the mandatory blend of ethanol in gasoline from 27% to 30%, and the mandatory blend of biodiesel in diesel from 14% to 15%. These new requirements are set to take effect on August 1, reports Ethanol Producer Magazine.
The announcement came from Brazil’s National Energy Policy Council (CNPE), a division of the Ministry of Mines and Energy. The higher blending mandates are designed to achieve several key objectives: eliminate gasoline imports, reduce harmful emissions, and lower fuel prices for consumers. Furthermore, the expanded use of biofuels is expected to provide a significant boost to domestic biofuel producers.
This new biofuels policy is projected to create an exportable surplus of approximately 700 million liters (about 185 million gallons) of gasoline annually. The shift to E30 (gasoline with 30% ethanol) is also anticipated to attract over R$10 billion (approximately $1.8 billion) in investments and generate more than 50,000 new jobs.
The transition to B15 (diesel with 15% biodiesel) is expected to spur over R$5 billion in investments for new soybean processing plants and crushing facilities, creating more than 4,000 jobs in the process.
The Ministry of Mines and Energy had previously announced in March that tests conducted by the Mauá Institute of Technology confirmed the safety and technical feasibility of these new blends. This means the increased blends can be adopted immediately without any negative impact on vehicles or consumers.
The E30 tests were carried out as part of the implementation of Brazil’s “Fuel of the Future Law,” which was adopted in 2024. This law establishes guidelines for making Brazil’s energy mix cleaner and more modern. The legislation permits the ethanol content in gasoline to be increased to as much as 35%, provided its technical viability is proven.
