Raízen Announces Construction of New Cellulosic Ethanol Plant in São Paulo State

The Construction of Raízen’s New Ethanol Unit in São Paulo Was Announced Through a Note Issued by Cosan

Through the announcement issued to the market, Raízen (a joint venture of Cosan and Shell) announced that it will invest in the construction of its second celulosic ethanol unit, with a capacity to produce 82 million liters per year, in the state of São Paulo. Also see: Raízen, the global producer of ethanol licensed under the Shell brand in Brazil, is accepting applications for technology job openings at the São Paulo plant and other regions in Brazil

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More Details About the New Unit That Will Be Built in São Paulo

Raízen’s new Celulosic ethanol unit, which will be integrated into the Bonfim bioenergy park located in Guariba, São Paulo, is expected to start operating in 2023 and will have double the capacity of its first plant. After the start of operations at the unit, Raízen’s total production capacity for celulosic biofuel will be approximately 120 million liters per year.

The published note also mentions that in addition to the new ethanol unit construction on site, there will also be sugar production, first-generation ethanol, and electricity generation from sugarcane biomass, which also hosts the company’s first biogas plant, inaugurated in October 2020. The expectation is that Raízen’s E2G Plant will begin operations in 2023.

The announcement of the construction of Raízen’s new ethanol plant meets the growing demand for the product in the international market, with 91% of its volume already sold under long-term contracts with a global energy player. With mastery of the technology, Raízen will establish itself as the only global producer to operate two celulosic ethanol plants on an industrial scale.

Also See: Shell Sells Lubricants Division to Raízen, the Largest Global Producer of Ethanol

Shell Brasil, a subsidiary of Royal Dutch Shell plc, signed an agreement to sell its lubricants division in Brazil to Raízen, the largest global producer of ethanol. According to the oil company’s statement, the transaction is still subject to approvals from regulatory bodies and is expected to be completed in 2022. After the transaction is completed, the Shell brand will continue to be prominent through the licensing agreement with Raízen. Customers will still have access to Shell brand products and services.

The long-standing partnership between Shell and Raízen includes retail, aviation, and fuel distribution portfolios. The integration of the lubricants division into the joint venture will generate synergies between the two companies and ensure the availability of lubricants and fuels with more decarbonization opportunities.

Raízen, a joint venture between Shell and Cosan, is an integrated energy company, a leader in sugarcane, ethanol, and bioenergy production in Brazil. Raízen has 26 production units, 860 thousand hectares of cultivated farmland, a network of more than six thousand Shell-branded gas stations, one thousand Select convenience stores, and over 3,300 commercial customers in Brazil and Argentina.