Sustainable aviation fuel has become one of the fastest-growing segments within the global energy transition. While renewable diesel and biodiesel have already established commercial markets, aviation remains one of the most challenging sectors to decarbonise because long-haul aircraft require liquid fuels with exceptionally high energy density. Latin America is now entering this market through its first large-scale ethanol-to-jet (ETJ) investment, with a project at REPLAN in São Paulo designed to produce up to 10,000 barrels of sustainable aviation fuel per day.
The development represents more than a new biofuel facility. It signals the region's first large-scale commitment to using abundant agricultural feedstocks, particularly sugarcane ethanol, as a pathway toward lower-carbon aviation fuels. For procurement professionals, the project highlights how renewable fuel production may increasingly compete with traditional chemical and fuel markets for the same bio-based raw materials.
Why Sustainable Aviation Fuel Matters
The aviation industry faces a unique decarbonisation challenge.
Unlike road transport, where battery-electric vehicles continue expanding rapidly, commercial aviation currently has limited alternatives to liquid hydrocarbon fuels. Sustainable aviation fuel offers one of the most practical approaches for reducing lifecycle greenhouse gas emissions while remaining compatible with existing aircraft engines and airport infrastructure.
Multiple production pathways are currently under development.
Used cooking oil and waste fats processed through hydrotreated routes.
Agricultural and forestry residues converted into synthetic fuels.
Renewable electricity combined with captured carbon dioxide to produce e-fuels.
Ethanol-to-jet (ETJ) technology converting bioethanol into aviation fuel.
This diversity reduces dependence on any single feedstock while encouraging innovation across the renewable fuels sector.
What Is the Ethanol-to-Jet Process?
The ETJ pathway transforms renewable ethanol into hydrocarbons suitable for aviation fuel through a series of chemical conversion steps.
Although the chemistry is complex, the production process follows a logical sequence.
Renewable ethanol serves as the primary feedstock.
Ethanol molecules are converted into intermediate hydrocarbons through catalytic processing.
Additional refining upgrades the material into aviation fuel meeting stringent performance specifications.
The finished SAF is blended with conventional jet fuel before commercial use.
One of the pathway's strongest advantages is its ability to utilise existing ethanol production capacity, making it particularly attractive in regions with well-established bioethanol industries.
Why Brazil Is Well Positioned for ETJ Production
Brazil has decades of experience producing fuel ethanol, supported by one of the world's largest sugarcane industries.
Extensive agricultural production, mature logistics infrastructure and established ethanol processing facilities provide a strong foundation for commercial ETJ development. These advantages reduce the need to build an entirely new renewable feedstock supply chain.
Several factors strengthen Brazil's competitive position.
Large-scale sugarcane cultivation supports reliable ethanol production.
Existing fuel ethanol infrastructure simplifies feedstock logistics.
Strong technical expertise has developed through decades of biofuel production.
Export capability provides opportunities for future international SAF markets.
These advantages help explain why Latin America's first major ETJ investment is taking place in São Paulo.
New Demand Could Reshape Ethanol Markets
The emergence of sustainable aviation fuel introduces an entirely new source of demand for renewable ethanol.
Historically, ethanol consumption has been driven primarily by road transportation fuel blending, industrial applications and selected chemical uses. Commercial ETJ production expands ethanol's role into aviation, creating another sector competing for the same renewable feedstock.
Several market implications deserve attention.
Ethanol producers may diversify beyond traditional fuel markets.
SAF demand could influence long-term investment in sugarcane processing capacity.
Renewable feedstock competition may affect pricing across bio-based industries.
Chemical manufacturers using ethanol-derived intermediates may monitor future supply trends more closely.
As ETJ projects move from demonstration to commercial operation, procurement teams will increasingly need to evaluate how renewable fuel demand influences broader chemical feedstock availability.
Why the REPLAN Project Matters
The planned 10,000 barrels per day production capacity demonstrates that Latin America is moving beyond pilot-scale renewable fuel development toward commercial manufacturing.
Large facilities provide valuable operational data on feedstock logistics, production economics and long-term reliability while helping establish regional expertise in advanced biofuel technologies.
Commercial deployment could also encourage additional investment throughout the renewable fuels value chain.
Several opportunities may emerge.
Agricultural producers may benefit from growing long-term ethanol demand.
Biofuel producers could expand product portfolios beyond road transport fuels.
Chemical companies may explore new partnerships with renewable feedstock suppliers.
Technology providers gain opportunities to improve ETJ process efficiency through larger operating facilities.
This broader industrial ecosystem strengthens the long-term outlook for renewable aviation fuels across the region.
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AI Image Prompt: Photorealistic ethanol-to-jet sustainable aviation fuel production facility connected to a modern bioethanol refinery, stainless steel process columns, ethanol storage tanks, engineers monitoring digital control systems, sugarcane fields in the distance with a commercial aircraft flying overhead, ultra realistic, no text, no labels, no logos.
Procurement Teams Should Monitor Feedstock Competition
As sustainable aviation fuel production expands, procurement professionals should expect increasing competition for renewable ethanol.
Historically, ethanol demand was largely linked to gasoline blending programmes and industrial uses. ETJ introduces aviation as another high-value customer, potentially influencing both feedstock availability and long-term pricing.
Important procurement indicators include:
Regional ethanol production and annual sugarcane harvest volumes.
Investment announcements for additional ETJ and SAF production capacity.
Government incentives supporting renewable aviation fuel.
Export demand for ethanol and sustainable aviation fuel.
Long-term supply agreements between ethanol producers and SAF manufacturers.
Monitoring these developments helps buyers anticipate future changes in renewable feedstock markets.
ETJ Joins a Growing Portfolio of SAF Technologies
Ethanol-to-jet is one of several pathways being developed to expand sustainable aviation fuel production.
Other technologies use waste oils, agricultural residues, municipal waste, renewable hydrogen or captured carbon dioxide. Rather than competing directly, these approaches are expected to complement each other because no single feedstock can satisfy future global aviation demand.
Each pathway offers different advantages.
ETJ benefits from established ethanol production and agricultural infrastructure.
Hydroprocessed waste oils use existing waste streams but face feedstock availability constraints.
Synthetic e-fuels offer very low lifecycle emissions but require large amounts of renewable electricity.
Biomass gasification expands feedstock diversity by utilising forestry and agricultural residues.
A diversified technology portfolio will improve supply resilience while supporting aviation's long-term decarbonisation goals.
What This Means for Chemical Markets
The expansion of sustainable aviation fuel extends beyond the transportation sector.
Renewable feedstocks increasingly serve multiple industries, including chemicals, fuels, plastics and advanced materials. As new applications emerge, producers may allocate agricultural resources toward the highest-value markets.
This evolution creates several implications.
Renewable carbon becomes a more strategic industrial resource.
Bio-based feedstocks may experience stronger long-term demand.
Chemical producers may increasingly compete with fuel manufacturers for renewable raw materials.
Investment decisions will consider opportunities across multiple downstream industries rather than individual sectors.
Understanding these changing relationships will help procurement teams anticipate shifts in future supply chains.
Preparing for Latin America's Renewable Fuel Future
The REPLAN ethanol-to-jet project represents an important milestone for Latin America's renewable energy transition. By leveraging Brazil's established ethanol industry, the project demonstrates how existing agricultural strengths can support emerging low-carbon technologies without creating entirely new feedstock systems.
For procurement professionals, the key lesson is that renewable ethanol is becoming a multi-industry resource. Aviation, chemicals and transportation will increasingly compete for the same sustainable feedstocks, making supply visibility and long-term sourcing strategies more important than ever.
As commercial ETJ production expands, companies that closely monitor ethanol availability, agricultural production and renewable fuel investments will be better positioned to navigate the evolving bio-based economy.
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