Large groups lead the expansion of sugar-cane crops
O Estado de S. Paulo - 11/21/2007
The potential for increasing the production of sugar and alcohol in the Country, together with the increase of the world demand for alternative sources of energy, injected new dynamism into the Brazilian agribusiness. Large groups are being drawn to the sugar and alcohol sector with eyes not only in the production of sugar and alcohol, but also on the possibility of adding, to such inputs, the production of bioelectricity and biofuel. The Odebrecht group has chosen Pontal do Paranapanema, in the far west of São Paulo, to develop its sugar and alcohol pole. The region has become famous for the land conflicts, but that did not inhibit the company: the investments may reach R$ 3 billion (US$ 1.72 billion). Odebrecht's plan is to be among the largest groups of the sector in the Country within five years. In order to do so, it purchased a traditional plant in the region, Alcídia, in Euclides da Cunha Paulista, and another one is under construction, Conquista do Pontal, in Teodoro Sampaio, and it is planning the construction of the third unit in Presidente Epitácio. In the future, Odebrecht may invest in Mato Grosso do Sul, Goiás and Minas. The project of a plant in Rio Brilhante (MS) is underway. Odebrecht is one of the companies that may be served by the alcoholduct that will interconnect the producing regions to the Petrobras terminal in Paulínia (SP) and to the Paranaguá port (PR). The expectation is that, in ten years, the sugar and alcohol sector represents up to 25% of the group revenues. The secretary of Agriculture of São Paulo, João Sampaio, believes the investments will contribute for the development of Pontal. He says the renewal of the sugar-cane crops, at the rate of 20% a year, may also stimulate the production of grains. The Renewable Energy Company (Cerona - Companhia de Energia Renovável) has chosen to invest in the State of Mato Grosso do Sul. One of its differentials will be the generation of electricity from the bagasse of sugar-cane and eucalyptus. The newly-formed group will invest R$ 1.5 billion (US$ 862 million) in the project that foresees the construction of two plants in Nova Andradina and Bataíporã. In the sugar cane off season, the furnaces will be fueled with a mix of bagasse, straw and eucalyptus chips. Cerona is formed by Brazilian Energy Partners (BEP), an American fund, specialized in renewable energy, which holds 95% of the company.