Adherence to the green agenda has become imperative for the world economy, which aims to transition the energy matrix based on circular energy production and the use of clean and sustainable technologies. There is a global movement that seeks to value and unify carbon markets as tools to price emissions and boost public and private investment for the energy transition. In this context, biofuels contribute to fulfilling the agreements signed by Brazil with the international community and, above all, present themselves as an opportunity for socioeconomic development for the country.
The new economic order proposes a development model that takes into account nutritional security, land use planning, a strategy to reduce poverty and a new market for agricultural products, with reduced impacts on the environment. The corn ethanol production chain perfectly aligns with this proposal as it is structured in an integrated, highly sustainable food and energy production system.
Studies show that Brazil can become not only a major global supplier of ethanol, but mainly of technology, considering sources such as corn and bagasse, in addition to sugarcane. The Energy Research Company (EPE) estimates that ethanol production is expected to grow 35% by 2029. And corn is the main driver of this growth.
Corn ethanol production jumped from 37 million liters in the 2013/2014 harvest to a projection of 4,2 billion liters in the 2022/2023 harvest. And the expectation is to reach the 10 billion liter mark in 2030/2031. In the 2022 harvest, corn supply in the country could reach 124,185 million tons, according to consultancy Safras & Mercado, an increase of 23% compared to the 2021 season. Total consumption should reach 114,557 million tons, exceeding the 96,941 million tons from the previous season.
It is at this juncture that corn, as a raw material for the production of biofuel, has been consolidating itself in the national market. The expansion of the corn ethanol segment in Brazil, which began around 5 years ago, is ongoing, with the emergence of new plants dedicated exclusively to the generation of ethanol through cereal (full) or the expansion of those that process sugarcane -sugar, but they use corn in the off-season (flex).
The first Brazilian ethanol plant that uses corn in 100% of its production, FS, which began operations in 2017, brings the values of the green economy into its DNA. In a closed cycle, the company's main activity is ethanol, but it also develops products for animal nutrition, produces corn oil and generates bioenergy, selling the surplus.
The initial production of 280 million liters jumped to 1,40 billion liters in five years. Our mission is to expand the supply of energy and food to new frontiers in a scalable and sustainable way with excellence and agility in execution, with the vision of becoming the largest producer of carbon negative fuel in the world.
The company's third unit, located in Primavera do Leste (MT), is under construction. The plant will generate an average of 8 thousand indirect jobs during construction and 500 direct and indirect jobs when operating. The inauguration is scheduled for 2023 and the total production capacity will be 585 million liters of ethanol/year. The investment is approximately R＄2,3 billion.
The company's expansion plans also include three other industrial units in the state of Mato Grosso, which will make it reach the production capacity mark of approximately 5 billion liters of ethanol per year.
It is indisputable that the consolidation of the corn ethanol segment brought several benefits to Brazil. The first of these was the stimulation of corn production in the center-west of the country, which promoted development in the region. It is also important to highlight that FS's production of corn ethanol is the result of planting second-crop corn, which makes this biofuel even more sustainable, as it maximizes the use of already open agricultural areas.
Furthermore, corn guarantees production for 355 days of the year. By storing the cereal we are able to produce ethanol in periods when we would not have fuel if we depended solely on sugarcane. In other words, corn is the perfect complement to sugarcane in the fuel matrix, as it allows consumers to have ethanol at the pump all year round.
In addition to fuel, the plants develop products for animal nutrition and promote energy cogeneration, selling surpluses. To top it off, the ash generated in the production process is mixed with bird waste and turns into organic fertilizer that returns to the field as an organic fertilizer.
Programs and mechanisms for selling and purchasing carbon credits, such as the one established in Brazil by RenovaBio, are efficient in motivating investment in reducing emissions and carbon sequestration. This type of market is more mature in Europe, the United States, and other countries.
Institutions aligned with the 2030 Agenda must follow this trend, establishing legislation to encourage the decarbonization of the economy. In this scenario, FS works to play an increasingly relevant role, expanding its capacity to generate carbon credits.
The ethanol production of its industries, including the third plant, under construction, can avoid emissions of almost 3 million tons of carbon per year. This number is equivalent to stopping burning 1,8 million tons of coal. This is an important contribution to the fight against global warming.
Every time a liter of ethanol is used there is an 80% reduction in carbon emissions compared to gasoline. Among the 220 ethanol plants in Brazil, FS's Lucas do Rio Verde plant is in first place (in public consultation) in terms of carbon footprint, with a carbon intensity of 17 gCO2/MJ.
But the company wants to go further. We are working to install a Carbon Capture and Storage process at the Lucas plant by 2024. If everything materializes as planned, we will store 400.000 tons of carbon 2km underground, reducing our carbon footprint by 30gCO2/MJ, which would put us in a carbon negative fuel position.
In the same harvest in which soybeans are planted, corn is planted. Soy leaves nitrogen in the soil and corn benefits from it, as in a symbiotic relationship. The biomass is predominantly from planted eucalyptus forests that store carbon in the soil, unlike other countries that use fossil fuels.
The whole world is betting on the electrification of cars. However, Brazil already has a green fuel, established on a scale, with cars ready to be fueled. And that is why we are moving towards an increasingly sustainable Brazilian energy matrix, whether with the use of flex, hybrid or electric cars with fuel cells powered by ethanol.
Corn ethanol is part of this story as it allows the generation of renewable fuel in a system integrated with food production, providing environmental, social and economic gains.
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By Lucas Tuffi, commercial director at Agrotools, a digital platform for corporate agribusiness
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