Brazilian ethanol producer Raizen on May 24 announced the inauguration of a new 82 MMly (21.66 MMgy) cellulosic ethanol plant. The R$1.2 billion ($230.63 million) facility is located at Bonfirm Bioenergy Park in Guariba, Sao Paulo, Brazil.
The facility will convert sugarcane bagasse feedstock into second generation (2G) cellulosic ethanol. According to Raizen, 80% of the plant’s production volumes have already been contracted.
The facility located at the Bonfirm Bioenergy Park is the second cellulosic ethanol plant developed by Raizen. The company celebrated the opening of its first cellulosic ethanol plant in 2015. That facility is located at the Costa Pinto Bioenergy Park in Piracicaba, São Paulo, Brazil. Together, the two facilities have a combined capacity of 112 MMly, making Raizen the largest cellulosic ethanol producer in the world, according to Raízen CEO Ricardo Mussa.
A statement issued by Raizen indicates the company has already announced plans to construct nine cellulosic ethanol plants. An additional 11 plants are currently in the company’s development pipeline. Together, the 20 current and proposed facilities would have the capacity to produce 1.6 billion gallons of cellulosic ethanol annually. Development of the facilities is expected to impact more than 500 suppliers and companies, generating more than 17,000 direct and indirect jobs, according to Raizen.
According to Mussa, cellulosic ethanol produced by Raizen achieves a carbon reduction of 80% when compared to Brazilian gasoline and a 30% reduction when compared to first generation ethanol produced from sugarcane feedstock.
A full copy of Raizen’s May 24 announcement is available on the company’s website.
"The technical study's result is an essential milestone to encourage the next steps necessary to unlock investments in BECCS technology by the ethanol sector. Now what we need is the advancement of regulation and carbon trading markets", says FS CEO, Rafael Abud. "In addition to utilization in automobiles, ethanol produced with the technology can be used to produce sustainable aviation fuel (SAF) and marine fuel, making Brazilian ethanol increasingly one of the largest contributors to the world's energy transition", he adds .
As soon as the senate approves the regulation of the activity – included in the bill for the Fuel of the Future program –, FS will invest an additional R$350 million in the implementation of equipment to capture, dehydrate, compress and inject CO2 underground. Work could begin later this year, with completion scheduled for the end of 2025. Around 230 direct jobs will be created during well drilling, construction and assembly of CO2 compression and dehydration equipment. Recently, the project had the financial support of FINEP, a public agency that promotes innovation and works with a focus on strategic, structuring and impactful actions for sustainable development in Brazil.
According to FS's Vice President of Sustainability and New Business, Daniel Lopes, "This is a crucial step towards achieving FS's vision, which is to be the largest producer of carbon-negative fuel in the world. We will now dedicate our efforts to monetizing this project through the sale of carbon credits, and await the approval of the legal framework by the Senate", he comments.
