Brazil biomass producer targets Europe
7 Nov 2011
São Luís, Brazil – Suzano Renewable Energy, part of the Suzano Pulp and Paper company, has recently announced plans to install one or two biomass production units in the state of Maranhão.
With investments of around R$1 billion in forestry development and the industrial part, the company said it expects to generate 2,700 direct jobs and 11 thousand indirect jobs in Maranhão when the units are operational.
Suzano Renewable Energy said it would operate in wood pellet production for export and had very ambitious and innovative growth plans to build on its leading position in the global, pellets-for-energy market.
The first investment cycle for the company includes three pellet production units with an annual output of 1 million tonnes each. Total installed capacity of 3 million tonnes will be ready by 2014, said Sulzano.
Accordign to the Brazilian group, the search for renewable sources of energy is a global trend that has become stronger in recent years. The European Union, it said, stands out in this scenario because it has established very aggressive goals and incentives to replace fossil fuels with renewable resources in its energy matrix, especially those coming from biomass.
As wood pellets are dehydrated, compressed milled wood particles, with a high energy value, they are seen as an efficient way to transport biomass for energy over long distances.
Forestry management for the energy market is based on the selection of specific eucalyptus clones, with a higher concentration of lignin and reduced harvest cycles, which translates into high production capacity and cost competitiveness, Sulzano added.
The company is still assessing capital structure alternatives for Suzano Renewable Energy that will minimize any potential need for funding resources from Suzano Pulp and Paper. This structure will be communicated as soon as it is defined and will be determined before the decision to purchase any equipment.
