Raízen to Invest R$ 150 Million to Build New Power Generation Unit Using Sugarcane Bagasse

The New Enterprise by Raízen Will Be Built Next to the Sugarcane Biofuel Plant in Paraguaçu Paulista, in the State of São Paulo

Raízen, a Brazilian integrated energy company with a presence in the sugar and ethanol production, fuel distribution, and energy generation sectors, announced that it will invest approximately R$ 150 million to build a new electricity generation unit using sugarcane bagasse, increasing its production capacity by 105,000 MWh/year. Also read this news: Raízen Signs Contract with Yara for Long-Term Renewable Natural Gas Supply

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The New Electricity Generation Unit from Sugarcane Bagasse

The announcement was made after Raízen was one of the sellers at the A-5 auction the day before, where the biomass source from sugarcane led the bids. As a consequence of the auction, Raízen also stated that it will establish certain energy trading contracts in a regulated environment with a minimum price of R$ 273/MWh.

The new cogeneration plant by Raízen, a Brazilian integrated energy company with a presence in the sugar and ethanol production, fuel distribution, and energy generation sectors, will be built next to the sugarcane biofuel plant in Paraguaçu Paulista, in the state of São Paulo, and will have a capacity of 30 MW. The annual revenue from the project is estimated at R$ 26.3 million.

Raízen was one of seven thermal biomass energy companies to win at this auction. In this category, projects from the sugarcane plants Coruripe, Aroeira, and Grupo Balbo also won, in addition to a wood chip project from FS Agrisolutions and another from sugarcane bagasse at UTE Cidade do Livro (a joint venture between Powerchina and IBS Energy).

Recently, Raízen Announced the Construction of a New Cellulosic Ethanol Unit in the State of São Paulo

Through a statement issued to the market, Raízen (a joint venture of Cosan and Shell) announced it will invest in the construction of its second cellulosic ethanol unit, with a capacity to produce 82 million liters per year, in the state of São Paulo.

The new cellulosic ethanol unit of Raízen, which will be integrated into the Bonfim bioenergy park located in Guariba, in the state of São Paulo, is expected to begin operation in 2023 and will have double the capacity of its first factory. After the unit starts operating, Raízen’s total production capacity for cellulosic biofuel will be approximately 120 million liters per year.

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

The announcement of the new ethanol plant construction by Raízen responds to the growing demand for the product in the international market, with 91% of its volume already sold under long-term contract with a global energy player. With the dominance of technology, Raízen will establish itself as the only global producer operating 2 cellulosic ethanol plants at an industrial scale.