(NDAgConnection.com) – Brazil’s ethanol exports to Europe are set to reach a record high this year, as foreign markets look more appealing than domestic, according to an analysis by S&P Global Commodity Insights.

Reuters reports that through August, Brazil shipped about 427 million liters of ethanol to Europe, 435% above the figures from the same period in 2021. By the end of 2022, the South American country is expected to export 600 million liters of the biofuel to Europe, said S&P.

Brazil’s previous record was set in 2010, when it exported 477 million liters to the continent.

The surge in exports comes as the biofuel sector responds to lower prices in Brazil and increased demand in Europe, making shipping abroad more appealing to producers.

As gasoline prices rise, demand for the cheaper E10 fuel (gasoline with 10% ethanol) is growing this year in major consuming countries such as Germany, the UK and Sweden, according to S&P.