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Suzano Plans Renewable Energy Unit to Produce Wood Pellets

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Suzano Papel e Celulose, Sao Paulo, Brazil, plans to invest up to $1.3 billion to create a renewable energy unit to produce and sell wood pellets to European electricity generators. According to Reuters news service, the unit, Suzano Energia Renovavel, would build three timber pellet plants, each having a capacity of 1 million metric tpy, with operations starting between 2013 and 2014. Most likely clients for the wood pellets would be European Union utilities that could use them to meet curbs on carbon emissions.

According to Suzano, the amount of resources and time necessary to produce 1 million metric tons of pellets could be less than half of that required to produce the same quantity of pulp. Initial annual revenues are estimated at $480 million, Reuters reports, adding that two facilities could be built between 2018 and 2019 to meet demand.


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