Pathways to carbon-neutral bioenergy by 2050

04/01/2025

Bioenergy plays a crucial role in the fight against climate change, as it is one of the few energy sources capable of reducing greenhouse gas emissions across multiple sectors, such as transportation and agriculture. Brazil has been producing bioenergy for decades and is widely regarded as one of the world’s most experienced countries in this field. Beyond the already existing efforts, a wide array of technological opportunities exists to further expand the supply of bioenergy with reduced carbon emissions in the coming years.

In 1931, Brazil pioneered the blending of anhydrous ethanol with gasoline for domestic use. By the late 1970s and early 1980s, ethanol was also introduced as a fuel for vehicles specifically designed to run on biofuel, solidifying its role in Brazil’s national energy matrix. Today, over 85% of Brazil’s automotive fleet consists of cars and motorcycles equipped with flex-fuel technology. In 2024, anhydrous (blended with gasoline) and hydrous ethanol (used directly by flex-fuel vehicles) accounted for nearly 50% of the country’s total energy demand from light-duty vehicles. Over the years, the Brazilian sugarcane and bioenergy sector has undergone significant transformations and is poised to play a key role in global energy transition.

In agriculture, sugarcane production has undergone significant consolidation in other Brazilian states., along with the emergence of ethanol production from second-crop corn. This new raw material now accounts for over 20% of Brazil’s total ethanol supply. In the industrial area, innovations have led to the creation of new bioenergy products, including bioelectricity generated from sugarcane bagasse and straw in traditional mills, as well as from wood chips at corn ethanol plants.

Besides, sugarcane has emerged as a promising feedstock for the production of Sustainable Aviation Fuel (SAF), a key component in reducing the carbon footprint of the aviation sector and helping the industry to reach the target of net zero carbon emissions by 2050. Furthermore, the production of biogas for electricity generation and biomethane from vinasse and filter cake is now a reality at many production facilities. These advancements have not only broadened Brazil’s bioenergy portfolio but also enhanced the efficiency of converting the energy captured from sugarcane and corn into forms that benefit society.

Brazil is also developing the production of second-generation ethanol from sugarcane bagasse and straw, as well as implementing bioenergy carbon capture and storage (BECCS) projects. These initiatives hold potential for producing biofuels with significantly lower carbon emissions.

The pathways to achieving carbon-neutral bioenergy in the future encompass several key strategies. These include replacing diesel with biomethane in production processes, generating renewable hydrogen from bioenergy, expanding second-generation ethanol production, and advancing carbon capture technologies in the production of both ethanol and biomethane. Additionally, the widespread adoption of bio-inputs and biofertilizers, the development of new sugarcane varieties capable of doubling agricultural productivity, and the intensification of circularity in the sector are critical.

The transformation achieved so far, coupled with ongoing initiatives, highlights the industry’s potential to produce a diverse range of bioenergy products with carbon-neutral or even negative emissions by 2050. This progress not only supports the achievement of global climate goals but also drives the continued advancement of sustainable agricultural practices and fosters social development, contributing to a more resilient and equitable future.

Luciano Rodrigues

UNICA's Director of Sectorial Intelligence

Agricultural Engineer from the Luiz de Queiroz College of Agriculture (ESALQ/USP), with a master's and doctorate in Applied Economics from the University of São Paulo (USP). Member of the Technical Board of Consecana-SP, Director of the Agribusiness Department at FIESP and of the Technical Advisory Board of the Energy Research Company (EPE). Professor of quantitative methods in the Professional Master's Program in Agribusiness at FGV/EESP.