Brazil’s Raízen to build second cellulosic ethanol plant – filing

Source: By Ana Mano, Reuters • Posted: Saturday, June 26, 2021

SAO PAULO, June 25 (Reuters) – Brazil’s energy company Raízen SA (CZLTA.UL) will build its second cellulosic ethanol plant in the country, with production capacity of 82 million liters per year, twice the capacity of its first plant, according to a securities filing on Friday.

Raízen, the world’s only company to operate two cellulosic ethanol plants on a commercial scale, did not provide details on the amount to be invested in the facility.

The move is aimed to cater to increasing global demand for cellulosic biofuels.

Raízen said 91% of the new plant’s output has already been sold under long-term contracts with a global energy player that it did not name.

The company said the new plant will be part of the Bonfim bioenergy park located in Guariba in the state of São Paulo, which in addition to producing sugar, first-generation ethanol, and power cogeneration from sugarcane biomass, also includes the company’s first biogas plant that was inaugurated in October 2020.

The new plant is slated to start operations by 2023, boosting Raízen’s total installed capacity to 120 million liters per year of cellulosic ethanol, the filing said.

Reporting by Ana Mano;Editing by Elaine Hardcastle