The National Union of Corn Ethanol (Unem) indicated that their members are committed to continued investment in the sector and increasing corn ethanol production. Unem indicated that there are three new corn ethanol facilities scheduled to begin operations by the end of 2020 with many more in the final planning phase.
In spite of the current low oil prices and the reduced demand for fuel due to the coronavirus crisis, Unem members are bullish on the future of corn ethanol in Brazil because ethanol will be Brazil's main fuel in the future. Almost all of the vehicles in Brazil are capable of utilizing 100% ethanol, 100% gasoline, or any combination of the two fuels.
In contrast, ethanol in the United States is a secondary fuel used as a mixture with gasoline. Another big difference in the United States is that the oil industry pushes very hard to limit the amount of ethanol they are required to blend into gasoline. As a result, ethanol production in the United States is struggeling to maintain market share,whereas ethanol production in Brazil continues to expand.