In Brazil on March 26, 2014 one of the largest biomass producers in Brazil EBR (Energias Renováveis do Brasil) together with the large U.S. chemical company Dow Chemical launched CHP on wood pellets. The capacity of the plant is 125.7 MW. The cost of the project amounted to $ 117,25 million (265 million reals).
The contract signed by both companies is to provide for the supply of steam and electricity for the next 18 years. According to the contract electricity will be supplied for Aratu petrochemicals complex in state of Bahia, which is one of the largest in Brazil. The owner of the complex is Dow Chemical Company. The plant will produce about 108 000 MW of electricity.
The project will use biomass from eucalyptus grown for reforestation purposes. It is planed that the material will come from farms owned by ERB or managed by the company. Thus, EBR and its partners have planted more than 10 hectares (100 km. m.) of eucalyptus.
The project managers say when the CHP is fully operational, it will reduce CO2 emissions by 180 000 tons per year and will cut gas consumption by 150 000 m³ per day.
EBR is also working on the implementation of investment projects for the production of electricity from sugarcane in Minas Gerais state.
Both eucalyptus and sugarcane is used by the company as feedstock for wood pellet production. As the cost of the sources is relatively low, it allows the company to have a good profit at a little costs of biomass production.
EBR, established only in 2008, today is one of the largest producers of biomass in Brazil. The main customers of its electricity are the second-largest American chemical manufacturer Dow Chemical and Japanese universal trading Mitsui Company.
It is seen that EBR has becoming increasingly visible on the biomass market in Brazil, increasing the production of wood pellets. Thus, in March, 2014 the company launched the project, which involves the production of electricity from eucalyptus. The company also has investments in electricity generating using sugarcane.
