Raízen opens the world’s largest Second-Generation Ethanol plant

Raízen, the world’s largest sugarcane ethanol producer, has opened its second plant for Second Generation Ethanol (E2G) in the city of Guariba, in the state of São Paulo. The milestone project reinforces the company’s commitment to sustainability and energy transition.

Recognized for being one of the biggest large-scale producers of sugarcane by-products, such as ethanol and bioelectricity, the opening of the Bonfim Bioenergy Complex reinforces Raízen´s commitment to meet the growing global demand for a low-carbon economy with the biofuel.

“This initiative represents a significant technological innovation in the bioenergy industry and is an example of profitable circular economy, standing out for its reduction of waste and environmental impacts,” says Ricardo Mussa, CEO of Raízen.

The new plant has an annual production capacity of 82 million liters of cellulosic ethanol, aimed at supplying markets with strict decarbonization mandates. The project will also create about 1,000 direct and indirect jobs in the area, contributing to local development and improving the quality of life of the neighboring communities.

What is Second-Generation (2G) Ethanol?

Due to its high photosynthetic efficiency and ability to regenerate, sugarcane is an ideal raw material to produce biofuels. By using proprietary technology, Raízen produces Second-Generation Ethanol from so-called lignocellulosic waste, such as bagasse and sugarcane straw, which were previously underutilized or discarded. This innovative process allows the production of ethanol without the need to increase the area under cultivation, promoting a more sustainable and efficient agriculture.

Ethanol produced from waste is very versatile when compared to other biofuels and becomes raw material for several industries. The main centers of demand for Second-Generation Ethanol are in Europe, United States and Japan, which look for cleaner alternatives mainly for hard-to-abate sectors.

The Second-Generation Ethanol produced by Raízen fuels the cars of the main motor racing categories in the world and is used in cosmetics and perfumes with more sustainable formulas than traditional alcohol.

Second-Generation Ethanol and energy transition

The energy transition aims to gradually reduce the consumption of raw materials of fossil or non-renewable origin. The use of agricultural waste in the production of Second-Generation Ethanol contributes significantly to reducing greenhouse gas emissions, as the CO2 captured by the cane during its growth is recycled in the biofuel production process.

This closed carbon cycle makes Second-Generation Ethanol a sustainable alternative to fossil fuels, helping to mitigate the impacts of climate change, with an 85% lower carbon footprint than American gasoline and a 30% lower carbon footprint than regular sugarcane ethanol.

Raízen has stood out as a leader in the bioenergy industry with a diversified portfolio that includes the production of ethanol, bioelectricity, biogas and other renewable solutions. The company continuously invests in research and development to improve its technologies and expand its operations sustainably.

In February 2024, the company issued a $1.5 billion green bond to finance renewable energy and energy efficiency projects. In March, the company launched a commercial operation to advance future revenues linked to a long-term Second-Generation Ethanol contract in the amount of US$ 617 million, a milestone that will allow Raízen to build new plants in the future, such as the Bonfim plant, which is equipped with cutting-edge technologies. The Bonfim plant also incorporates energy co-generation systems, which use sugarcane bagasse to produce electricity, further increasing the efficiency of the process and reducing environmental impact.

Worldwide recognition and leadership

Raízen is widely recognized for its leadership and innovation in the renewable energy sector. The company´s CEO Ricardo Mussa is an active advocate of energy transition and leads one of B20 Brazil’s working groups on energy transition and climate. His dedication in these global discussions highlights Raízen’s importance in developing sustainable solutions for the future of energy.

“The Bonfim plant is a concrete example of Raízen’s commitment to innovation and sustainability. This project demonstrates how we use cutting-edge technology to transform waste into valuable resources, fostering a circular economy and reducing our carbon footprint,” says Mussa.

Raízen represents a unique opportunity for investors to take part in a growing industry with strong potential for long-term return. The Bonfim plant is a clear example of the company’s commitment to innovation and sustainability, offering a feasible and profitable solution for biofuel production.

Raízen continues to expand its operations and develop new technologies, consolidating its position as one of the most innovative and sustainable companies in the bioenergy industry. The opening of the Second-Generation Ethanol plant at Bonfim is an important step in this journey, reaffirming the company’s commitment to a cleaner, more sustainable future.

To find out more about Raízen and its portfolio of renewable solutions, visit www.raizen.com.br/en/global.