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Guilherme Linares Nolasco

Executive President of the National Corn Ethanol Union

OpAA74

Corn ethanol: part of the energy transition solution

The advance of economic and social development projected for the coming decades, motivated by population growth and the inclusion of less favored social classes in the consumption environment, submits us to a reflection on the challenges and responsibilities of the global agenda of energy transition, decarbonization and increasing food production and supply around the world.

Brazil has the vocation to respond quickly to the global demand for bioenergy and sustainable food production. The country has unique characteristics of a tropical agriculture, with availability of fertile soils, water resources and technology adapted to its different biomes, capable of producing two to three crops, under normal conditions, in the same crop year, reaching four crops. with the incorporation of irrigation.

With this, it has the capacity to multiply its agricultural production without having to advance into new areas of exploration. According to the National Supply Company, Brazil will produce more than 125 million tons of corn in the 2022-2023 harvest, in an area of approximately 22 million hectares, that is, something around 95 bags of corn per hectare. But there are people harvesting “180 bags”.

At the same time, in Mato Grosso, only 55% of the total soybean cultivated area (11.5 million hectares) receives second crop corn (6.4 million hectares). At the same time, the state still has more than 10 million pastures with agricultural potential and great potential for intensifying production through the Integration of Crop, Livestock and Forestry, providing a virtuous circle of increasing agricultural production of food, fiber, meats and biofuels, again without the need to move into areas that are still intact.

As the eternal Minister Alysson Paulinelli has said for many years, corn will be the great crop in Brazil, an old prediction and already confirmed in this last harvest, leaving the condition of "off-season" for a production greater than the soybean crop in Mato Grosso.

We need to appropriate our externalities and transform the growth potential of sustainable Brazilian agricultural production into a green currency asset to attract investments that seek sectors that practice environmental, social and corporate governance, contributing to the decarbonization of the planet and stimulating the increase of food production.

Our inexhaustible sources of renewable energy, such as ethanol, biodiesel, biogas, photovoltaic, hydroelectric, wind energy and the production of food in a sustainable way, are assets aimed at national economic activity with a lack of definition, recognition and encouragement through consistent public policies that make our sustainable products recognized and valued in national and international markets, through payments for environmental services and remuneration in the low carbon economy.

The corn ethanol sector is a successful case in this field of green economy with an environmental, social and corporate governance model . In the last five years, attracted by the guarantee of an abundant supply of second-crop corn in the Midwest, the sector has sustained substantial investments, supported by the dependence on soybean crop rotation, favoring the supply and supply of second-crop corn, regardless of of market conditions.

From a niche market in 2015, we went from a tiny production to the current installed capacity of over 5 billion liters of ethanol (anhydrous plus hydrated) in this crop, we incorporated technology that currently transforms a ton of corn into more than 430 liters of ethanol in a cycle that enjoys more than 90% of the installed capacity, operating 350 days uninterrupted in each annual cycle, with a scheduled maintenance of 15 days.

In periods of changes in government, economic and political instability, the sector continues to be supported by the premises of the great global agendas of energy transition, decarbonization and food production as the most robust pillars of the growth of the green economy as a strategy and business vocation for Brazil.