Suzano Renewable Energy, the Suzano Pulp and Paper company that will operate in the biomass for energy generation market, recently signed a letter of intent to install one or two production units in the state of Maranhão for starters.

According to the company, the biomass for energy business is an important part of Suzano Pulp and Paper’s growth plans, leveraging its competencies and consolidates its forestry holdings. With investments of approximately $567 million in forestry plantations and the plants, the company expects to generate 2,700 thousand direct jobs and 11 thousand indirect jobs in Maranhão when the units are operational.

Suzano Renewable Energy will operate the wood pellet plants for export and has very ambitious and innovative growth plans. The first investment cycle for the company includes three pellet production units with an annual output of 1 million tons each. Total installed capacity of 3 million tons will be ready by 2014.

The company sees Europe as a natural market. "The European Union stands out in this scenario because it has established very aggressive goals and incentives to replace fossil fuels with renewable resources in its energy matrix, especially those coming from biomass. Since wood pellets are dehydrated, compressed milled wood particles, with a high energy value, they are the most efficient way to transport biomass for energy over long distances."

Forestry management for the energy market is based on the selection of specific eucalyptus clones, with a higher concentration of lignin and reduced harvest cycles, which translates into high production capacity and cost competitiveness.