Argentina Aims for Record Ethanol Production in 2026

Argentina is on track to set a new record for ethanol production in 2026, according to the USDA's Foreign Agricultural Service (FAS). The country's fuel ethanol output could reach an impressive 1.35 billion liters next year, driven by rising domestic consumption and expanded corn processing capacity.

The majority of this increase will come from corn-based ethanol, with around 60% of production expected to be derived from this source. This growth is being supported by Argentina's record 2025/26 corn crop and additional production capacity, which will see around 3% of the country's total corn output used for bioethanol production.

The industry has also received a boost from a regulation introduced in March allowing fuel distributors to voluntarily increase ethanol blending to 15%, above the mandatory 12% rate. This move is expected to support growth in the sector, although further expansion will depend on changes in government policy.