Suzano building three massive pellet mills

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.