Brazilian pulp company Suzano creates $1.3bn biomass unit

30 July 2010

Brazilian pulp and paper company Suzano Papel e Celulose has committed to invest $1.3bn in the formation of a biomass unit that will market wood pellets in Europe, according to reports.

The company plans to construct three biomass plants through the new Suzano Energia Renovavel business division, which will have a combined capacity to produce around three million tones of timber pellets annually, Reuters said.

The new renewable energy business division is predicted to generate about $480m in yearly revenue, selling biomass energy to electricity utilities in Europe to fufill their carbon emission reduction quotas.

The company is due to kick into operation in 2013 but may be extended in 2018, and the company is looking into raising funds in order for the unit to function independently.

It estimates that it will take about half the time to produce the pellets as it would to produce its traditional output of pulp.

In April, Suzano launched its Forestry Partnership Program in the state of Piauí, with the objective of financing rural landowners to participate in the pulp production chain through eucalyptus plantations.

The company said the initiative formed part of a number of investments into Suzano’s growth cycle, under which it sought to produce 4.3 million tons of pulp each year within the coming decade.

Copyright © 2010 NewNet

Tags: biomass, wood pellets

This story was published on Friday, July 30th, 2010 at 3:10 pm and is filed under Latin America, biomass/biofuel, companies, news. You can follow any responses to article entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

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