Brazil, the world’s leading producer of sugarcane-derived ethanol, has long leveraged biofuels in its transportation sector. However, ethanol’s potential in electricity generation has up to now been overlooked. The project partners plan to change that by testing a Wärtsilä 32M engine over 4,000 operational hours from April 2026, to demonstrate ‘the significant potential for this local fuel as a clean power source’.  

The test is part of Wärtsilä’s WISE (Wide and Intelligent Sustainable Energy) programme, co-funded by Business Finland. If successful, the project could pave the way for widespread adoption of ethanol-based power plants across Brazil, according to José Faustino Cândido, Chief Technology Officer at utility Energetica Suape II.

The Brazilian government has already ‘taken the first step’ by including ethanol as an authorised fuel for the country’s 2025 reserve energy capacity auction, which is due to take place in June, notes Carlos Alberto Mansur Filho of Grupo Econômico 4M, the majority shareholder in Energetica Suape II.  

He says: ‘Given that ethanol is a unique, locally available biofuel, the Brazilian government would benefit from ensuring that ethanol-based power plants would be part of the approved power generation technologies for the country. By including flexible and sustainable solutions, the country can provide affordable and reliable energy to the people of Brazil.’

Wärtsilä is no less enthusiastic. ‘This initiative could be a game-changer in advancing sustainable energy solutions and shaping the future of clean power generation in Brazil, reducing greenhouse gas emissions, and decreasing dependence on fossil fuel imports,’ adds the company’s President of Energy, Anders Lindberg. ‘Ethanol could also play an important role in the decarbonisation of the electricity sector, as it is readily available today and can be easily transported globally, making it a truly accessible and scalable solution.’

The trial aligns with the International Energy Agency’s (IEA) Net Zero Emissions by 2050 (NZE) Scenario, which calls for a near-doubling of global bioenergy use by 2030. In 2023, biofuels contributed around 700 TWh of electricity, approximately 2.4% of global power generation. By 2030, this figure must rise to 1,250 TWh (3.2% of global generation) to support the clean energy transition, says the IEA.

E30: Transforming Brazil’s fuel market

Meanwhile, Brazil’s Minister of Mines and Energy, Alexandre Silveira, has suggested that increasing the ethanol content in gasoline transport fuel from 27% (E27) to 30% (E30) could reduce the price fuel at the pump and improve energy security by making Brazil independent of gasoline imports.  

He was speaking during a presentation last month of the results of a study by the Mauá Institute of Technology (IMT), which has confirmed E30’s technical viability. Silveira estimated E30 could cut gasoline prices by R$0.13 per litre (2.25 US cents) and eliminate the need to import 760mn litres of gasoline annually. He also said a shift to E30 could drive demand for an additional1.5bn litres of ethanol, spurring R$9bn ($1.6bn) in sector investments.  

‘E30 is safe for our fleet of two and four-wheelers. With it, Brazil will no longer be hostage to the international market and the volatility of external prices. The price of gasoline will be determined by domestic competitiveness, and not by the import parity price,’ Silveira said.

Under Brazil’s ‘Fuel of the Future’ legislation, the level of ethanol in gasoline can be increased up to 35%, provided that technical feasibility is proven. It is estimated that adopting the new blend could reduce greenhouse gas emissions by 1.7mn t/y. The IMT tests were monitored by four local automotive industry bodies. A proposal to increase the ethanol blend to 30% will now be submitted to the National Energy Policy Council (CNPE) later this year.