OSLO, NORWAY — Brazilian ethanol, whether from sugarcane or corn, has entered the route of Norway’s merchant fleet, the fourth largest in the world, with 1,577 ships. Adding fishing boats, leisure vessels, and other types, the total reaches 21,239, according to the local government.

Brazil has been taking steps to promote its ethanol in Norway. Rodrigo Azeredo, Brazil’s Ambassador in Oslo, mentions that a seminar will be held at the Brazilian Embassy on October 1st. The aim is to present Brazilian biofuels as an alternative to help Norway achieve its decarbonization goals.

For the ambassador, sustainable fuel for shipping is a growing demand, especially from the Norwegian Shipowners’ Association (NSA), which seeks to meet the ambitious CO₂ reduction targets set by the Norwegian government.

“They want to talk about methanol, ethanol, and are exploring other solutions. Brazil has the technology and can meet this demand,” he says.

Brazil is one of the largest producers of ethanol in the world, with an annual production of 36 billion liters — 72% from sugarcane and 28% from corn.

According to the ambassador, Brazil's position in ethanol production makes the country one of the main suppliers of fuel for the Norwegian fleet.

Corn ethanol, for example, presents itself as a viable solution, especially after the recent approval by the International Civil Aviation Organization (ICAO) to use second-crop corn for fuel production.

The expectation is that this biofuel will also be recognized and adopted by the International Maritime Organization (IMO) for shipping.

“Norway is already in negotiations with shipping companies, some of which have already ordered ships powered by ethanol and ammonia, seeking alternatives to meet their environmental targets,” says Azeredo.

As part of the effort to engage with Norwegian transporters, a Brazilian Navy training ship will make a trip to Norway. It will be the first journey of the decarbonized ship, which offset its emissions in partnership with a Brazilian company.

“We are inviting companies like Petrobras, Raízen, and others to participate and discuss these possibilities, along with shipowners, major companies in the sector, and the Brazil-Norway Chamber of Commerce,” says the ambassador.

Mercosur-EFTA Agreement

According to Azeredo, discussions about Brazilian ethanol as one of the ways for Norway to decarbonize its fleet are happening at an opportune moment for Brazil. In September, the agreement between Mercosur and the European Free Trade Association (EFTA), composed of Switzerland, Norway, Iceland, and Liechtenstein, is expected to be signed in Brazil.

“The agreement puts us in a different position. We already have a solid bilateral framework of agreements, which includes, in addition to Mercosur-EFTA, instruments to stimulate investments,” says the ambassador.

In July, Mercosur and EFTA announced the completion of negotiations for the signing of the agreement.

For Brazilian products, free trade access to EFTA markets will include nearly 99% of the export value, covering agricultural and industrial sectors. In 2024, Brazil exported US$ 3.1 billion and imported US$ 4.1 billion in goods from EFTA.

With this measure, EFTA will eliminate 100% of import tariffs in the industrial and fishing sectors once the agreement enters into force.

“Ethanol, like other agribusiness products, has great potential to expand its export to EFTA countries,” says the ambassador.

According to the Ambassador, the agreement brings mutual benefits: it allows Norway to diversify its import basket and enables Brazil to expand markets for strategic products. “Defending multilateral cooperation is at the core of the interests of both Brazil and Norway,” he states.

The reporter traveled at the invitation of Innovation Norway and Yara Fertilizers.

The text was translated with artificial intelligence. If you have any questions or corrections, please write to rafael.balago (at) exame.com.