The Brazilian Behemoth: The Biggest, Baddest Cellulosic Biorefinery of them All, open for business

News arrives from Brazil that has been eagerly awaited by all. Raízen has inaugurated its new, $228 million, second-generation ethanol plant, at the Bonfim Bioenergy Complex, in Guariba, in the state of São Paulo, Brazil. The plant is the largest in the world and has 80% of its 82 million liters annual production capacity (21.6M gallon) already contracted.

Anticipating future revenues related to the commercialization of E2G and green loans, such as the issuance of its first green bond, Raízen has 35% of its debt linked to green projects, including the construction of the plants. 

The company has announced the construction of nine cellulosic ethanol plants, all of which already have their volumes committed under long-term contracts in Euros. Another eleven plants are included in Raízen’s plan, totaling 20 E2G sites that will have the capacity to produce 1.6 billion liters per year.

Social and economic impact

The E2G plants also have social and economic benefits, as they increase the representation of the towns where they are located in the state participation fund, in addition to driving shared growth, developing national suppliers, supporting the production of equipment domestically, training the local workforce and creating jobs both during and post construction. Combined, the construction of the 20 E2G plants will benefit more than 500 suppliers and companies and generate more than 17,000 direct and indirect jobs.

To train the employees who will work in the new plants, Raízen created the first E2G Learning program, focusing on specialization and professionalization to develop skills used in the production process. The program includes partnerships with institutions to provide training and qualification, such as SENAI (the Brazilian center for industrial training), State Technical Schools and BioContal.

Since its inception, Raízen already has avoided 30 million tons of CO2 emissions, and its goal is to expand the decarbonization potential of its products by avoiding over 10 million tons of CO2 emissions per year. 

Reaction from the stakeholders

“With a carbon footprint 85% smaller than American gasoline and 30% smaller than First Generation Ethanol (E1G), this product is an important technological innovation in the bioenergy sector and an example that demonstrates the profitability of the circular economy. It stands out for reducing waste and environmental impact, since it increases production up to 50% without requiring a single additional hectare of sugarcane and does not compete with food production,” said Ricardo Mussa, CEO of Raízen.

“E2G is a key product in the energy transition that meets sustainability mandates from the most demanding markets and from sectors with the greatest urgency for potentially greener and scalable solutions. The Bonfim site, together with the E2G plant at the Costa Pinto Bioenergy Complex, solidifies Raízen’s position as the world’s largest ethanol producer operating two industrial-scale E2G plants, with a total capacity of 112 million liters per year,” added Mussa.