Fiscal policies and production capacity generate growth in the biofuel industry in MT



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Formal employment in the corn ethanol industry increased by 12.5% from 2021 to 2022.

The reduction of bureaucracy in access to the tax incentive policies of the Government of Mato Grosso and the high production capacity have resulted in the growth and national prominence of biofuel production in the state, highlights the secretary of the State Secretariat for Economic Development (Sedec), César Alberto Miranda Lima.

The State is the largest producer of corn ethanol in Brazil, responsible for more than 80% of national production, according to the National Corn Ethanol Union (Unem).

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“The sector’s expectation for the coming years is to increase the number of ethanol industries in the State to 19. We currently have 11 plants. Mato Grosso's corn production capacity more than doubled in a decade, due to production in two harvests in the same year and the high technology used. With this, we combine the ease and efficiency of tax incentive policies with legal security, and we are encouraging this sector to invest in the State”, explains César Miranda.

According to the secretary, with the implementation of these new plants, Mato Grosso will further increase corn ethanol production, generating new jobs and boosting the economy.

“An example of this is the northern region of the state, which is connected by the main grain flow route. Today the North is responsible for 70% of corn production. Of the 11 ethanol plants we have in the State, seven are installed in this region”, he says.

Leading the national ranking of grain and corn ethanol production, Mato Grosso has registered industrial expansion with the implementation of new plants, generating growth in new jobs.

Data from the Employment and Unemployed Registry (Caged) indicate an increase of 12.5% in formal jobs in 2022 in the sector, compared to the same period in 2021. In 2021, the State had eight thousand formal workers in the corn ethanol industries. In 2022, this number rose to more than nine thousand jobs.

Currently, corn ethanol is one of the energy sources with the lowest environmental impact – the biofuel presents a significant decrease in greenhouse gas emissions of more than 70% compared to gasoline. The Government of Mato Grosso projects further growth in the sector in order to achieve the country's sustainable goal in the global response to the threat of climate change.

In total, in Brazil, there are 18 corn ethanol plants in operation, according to Unem. Of these, 11 are installed in the Mato Grosso municipalities of Lucas do Rio Verde, Sorriso, Sinop, Nova Mutum, Poconé, Nova Marilândia, São José do Rio Claro, Jaciara, Campos de Júlio. of these industries. Three of these units are already being expanded in the cities of Sorriso (two plants) and Campos de Júlio.

In addition to these, in the country, another 9 plants are also in the construction process. Six of these units are being installed on Mato Grosso soil, in the municipalities of Sorriso, Ipiranga do Norte, Campo Novo do Parecis, Primavera do Leste, Tabaporã and Vera.

Indicators from Sedec's “Development Observatory” reveal that, despite the sustainable biofuel alternative still being considered new, the State has been achieving relevant corn ethanol production rates compared to the national scenario.

In the 2021/22 harvest, Mato Grosso was responsible for more than 85 % of the country's production, reaching more than 3 billion liters, surpassing the production of ethanol derived from sugar cane just three years after the implementation of the first plant exclusively of corn in the State. The estimate is that the sector will reach around 8 billion liters of biofuel by 2028.

In addition to Mato Grosso, only the states of Goiás, Mato Grosso do Sul, Paraná and São Paulo have biofuel plants.

Source: datagro

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