Brazil is the world's largest ethanol producer from sugarcane and a pioneer in using ethanol as a automotive fuel since the 1970s and this according to Embraer puts the country in a good position to produce aviation grade bio-kerosene.

The head of biofuels research at Embraer says Brazil is in a strong position to develop an aviation biofuel industry and that larger scale production will help reduce prices in the future.

The production of aviation biofuels could herald important changes for the airline industry. In the long-term it may could reduce dependence on oil and even lower operational costs, according to analysts.

Brazil in the 1970s was a pioneer in using ethanol to fuel most of its cars and the country's largest carrier Gol Airlines was among the first to use a fuel blend that includes 10% of a sugarcane based bio-kerosene.

The new fuel is not yet used regularly but Gol Airlines has made a number of experimental flights and plans to carry on with the trials.

Embraer produces a small agriculture airplane powered by pure ethanol called the Ipanema, but it is the only bio-fuel powered plane produced in the country.

According to Embraer, however, the aviation sector will develop biofuels that can be used in the exact same engines that now fly using petroleum-based aviation fuels, rather than producing specialist bio-fuel planes.

The main goal is to cut down greenhouse gas emissions. Airlines globally have committed to cut their carbon emissions in half by 2050, and many believed bio-fuels will play a key role in achieving this.