Ethanol fuel has been around for years
In 2020, Brazil was the second-largest biofuel producer in the world, ranking only behind the U.S. The South American country’s history with ethanol fuel – which accounts for over 80 percent of the national biofuel output – is no recent trend. Since 1976, a blend of ethanol fuel in commercialized gasoline is mandatory, with the minimum blend rate standing at 27 percent as of 2022. In addition, pure ethanol is also sold as vehicle fuel in Brazilian petrol stations, frequently a cheaper alternative against spikes in gasoline prices. In fact, more than eight out of ten new light vehicles registered in the country are flexible fuel, with an engine that can run on any ratio of ethanol and gasoline.A similar, yet more recent development is also seen in Argentina, the second-biggest producer in the region. The mandated blend of ethanol fuel in gasoline sold in the country was first enforced in 2010. Since then, the Argentine ethanol fuel output has increased nearly nine-fold, surpassing one billion liters per year. In contrast, Colombia’s annual production has oscillated throughout the past decade, with blend mandates adjusted accordingly in order to supply the internal demand.