Brazil is about to sign an important memorandum of understanding with China to boost Brazilian ethanol sales. The measure, which aims to strengthen biofuel trade between the two countries, comes at a time of energy transition, with China seeking alternatives to fossil fuels.

Brazil, with its solid ethanol production, sees China as a strategic opportunity to expand its exports. Currently, China imports Brazilian ethanol to blend with gasoline, in line with its energy transition policy, which seeks to reduce dependence on fossil fuels.

In the first half of last year, ethanol exports to China totaled US$ 27 million. Although China is a producer of biofuels, its growing emphasis on the development of electric power opens up considerable space for ethanol imports, especially from Brazil.

(Source: Agronegócia Portal, on May 8)