A strategic move to internationalize the Ipanema crop duster, coupled with a structural boom in corn-based ethanol production, solidifies Brazil's leadership in sustainable energy.
Brazil is reinforcing its status as a global bioenergy powerhouse through a dual strategy of technological export and domestic production innovation. On one front, aerospace giant Embraer is taking its first concrete steps to internationalize its successful ethanol-powered agricultural aircraft, the Ipanema. Simultaneously, the nation's bioenergy matrix is undergoing a structural transformation, with corn-based ethanol production surging to historic levels, attracting significant investment, and bolstering national energy security.
Embraer's Biofuel Ambition Takes Flight
The internationalization effort centers on the Ipanema, a crop duster that has been exclusively powered by biofuel since 2015. Embraer recently signed a memorandum of understanding with Essential Energy Holding, an Argentine ethanol producer, to explore market opportunities in Argentina's key agricultural regions, such as northern Santa Fe province. This partnership is a crucial step in overcoming the primary barrier to the Ipanema's foreign expansion: the lack of a widely distributed and abundant ethanol supply outside Brazil.
Embraer's director of agricultural aviation business and production, Sany Onofre, noted that the lack of fuel availability had previously made expansion into Latin America "a difficulty, or even an impossibility." To address this, the company has engaged with industrial associations and potential partners across the region, including in Paraguay, Uruguay, and Mexico, finding them "extremely enthusiastic."
Initially conceived to offer farmers a cost-effective alternative, ethanol being cheaper than gasoline, the Ipanema has increasingly gained a strong environmental appeal due to its lower carbon footprint. Essential Energy CEO Federico Pucciariello noted that the collaboration aims to "improve the economic equation for Argentine producers by facilitating access to cutting-edge technology and locally produced ethanol, which translates into lower operating costs and higher productivity in the field."
The market potential is significant. While Embraer's agricultural aviation unit currently generates around US$60 million annually, the company estimates that the opening of Latin American markets could boost the segment's revenue by 20% to 30%. The groundwork is already being laid, with a recent Ipanema sale to a rural producer in Paraguay, which quickly led to nationwide operational approval for the aircraft. In Argentina, Embraer is currently awaiting regulatory clearance for operational authorization.
Competing Landscape
Despite the growing presence of agricultural drones, Embraer does not yet view them as direct competitors. "They are smaller-capacity products designed for specific tasks," Onofre explained. An Ipanema carries up to 700 kilograms per flight, whereas the largest spraying drones currently carry around 50 kilograms. However, the company remains vigilant, acknowledging that "larger drones and unmanned aerial vehicles [are] under development, and we will encounter them along the way."
The Corn Ethanol Revolution
The second major development underscoring Brazil's bioenergy leadership is the structural shift in its domestic ethanol production. Corn-based ethanol has surged, gaining a central role in the country’s biofuels matrix and attracting new investments.
In a historic milestone, corn ethanol accounted for 77.2% of total ethanol production during the second half of December 2025, according to data from the Brazilian Sugarcane and Bioenergy Industry Association (Unica). This figure reflects the strong momentum of the 2025/26 harvest and sustained investment flows into the sector.
The rapid growth of corn ethanol marks a significant change in an industry historically dominated by sugarcane. Corn-based production offers a key advantage: operational predictability, allowing plants to operate year-round and reducing dependence on agricultural seasonality.
During the 2025/26 harvest, corn ethanol production reached 6.86 billion liters, representing a 13.98% increase compared to the same period of the previous season. This expansion is supported by technological advances, improved energy efficiency, and the integration of valuable co-products.
Strengthening Energy Security and Regional Development
The expansion of corn ethanol reinforces the strategic role of bioenergy in Brazil’s energy matrix. By increasing the supply of renewable fuels, the country reduces its exposure to international oil price volatility and geopolitical risks. This diversification aligns Brazil with global climate goals and decarbonization commitments.
The growth trajectory is closely linked to rising investments in new plants and capacity expansions. The continuous production throughout the year reduces financial risk, making the sector increasingly attractive to private capital. Furthermore, the integration of ethanol production with power generation and co-products, such as DDG (distillers dried grains) used in animal nutrition, enhances project profitability and strengthens synergies across the agriculture, livestock, and energy sectors.
Beyond the energy industry, this expansion generates jobs, stimulates local economies, and strengthens agribusiness value chains, with municipalities hosting ethanol plants benefiting from increased tax revenues and broader economic activity.
The simultaneous push by Embraer to export its ethanol-powered technology and the domestic surge of corn ethanol production illustrate a mature and dynamic Brazilian bioenergy sector. By combining technological innovation with a structural shift in production, Brazil is not only securing its own energy future but also positioning itself as a global leader in the transition to sustainable, low-carbon energy sources. The next phase for the industry will involve successfully replicating the ethanol infrastructure abroad while continuing to maximize the efficiency and economic benefits of its diversified domestic production.
