BP Bunge announces BRL 530 million investment in expansion of Pedro Afonso (TO) unit

BP Bunge Bioenergia, one of Brazil’s leading ethanol, sugar and bioelectricity producers, ended the 23/24 harvest with progress in its main indicators. The balance sheet for the period shows a growth of 7% in net revenue compared to the 22/23 harvest, and 39% compared to the initial harvest (20/21), totaling BRL 8.4 billion. In addition, the consolidated value of investments made by the company since the start of its operations totaled BRL 7 billion.

Among these investments is the project to expand the Pedro Afonso plant in Tocantins, estimated at around BRL 530 million. The initiative strengthens the company’s already robust operational structure, made up of 11 agro-industrial units in five states (TO, GO, MG, MS and SP). The expansion, which will begin in October 2024 and end in July 2026, is expected to increase the Tocantins unit’s sugarcane crushing capacity by 800,000 tons, from 2.6 to 3.4 million tons of sugarcane processed each harvest, an increase of 30%. As a result, the company’s overall crushing capacity, already considered one of the largest in the sector, will rise from the current 32.4 million to 33.2 million tons.

“In the 23/24 harvest, we achieved a 14% increase in the crushing indicator, reaching 28.6 million tons, a record number since the first harvest and which is very close to our current capacity. That’s why this investment in Pedro Afonso is so significant, as it allows us to expand production capacity, sustaining our growth objectives,” explains Geovane Consul, CEO of BP Bunge Bioenergia.

Agriculture: expanding sugarcane plantations and adopting even more sustainable technologies

The investments planned for the expansion of the Pedro Afonso mill are being directed towards different fronts. In the agricultural area, one of the highlights is the planting of 6,000 new hectares of sugarcane, which will increase the unit’s planted hectares by 20%, reaching 34,760. There are also plans to install around 20 new pivots for irrigation, which will be operated with the support of renewable energy generated by the plant itself – which will also have its potential expanded in this regard.

It is also worth mentioning the inauguration of a localized vinasse loading and application system for sugarcane fertigation, a sustainable field management practice already successfully used by BP Bunge in other units, thus strengthening the company’s position as a benchmark in regenerative agriculture in the sugar-energy sector. The total area covered by this new operation involving vinasse located at the plant will be around 15,000 hectares.

“Today, of the 450,000 hectares under the company’s management, 86% already use vinasse in fertigation, a process capable of increasing the longevity and productivity of sugarcane plantations, as well as reducing the use of water in irrigation. We have a goal of expanding this indicator to 96% and the Pedro Afonso project meets our plans in this regard,” says the CEO.  

Industry: automation and boosting production capacity

As far as changes in industrial operations are concerned, the highlight is the implementation of the latest technologies which, in addition to an increase in milling capacity, will also increase energy cogeneration capacity. As a result, the unit will be able to generate 185 GWh/year of clean energy, an additional volume of 25 GWh that is capable of lighting up a town of around 10,000 inhabitants/year.

In addition, with all the innovations planned in the expansion project, there is also the projection of an increase in ethanol production capacity at the unit, from 200 million liters to 280 million liters per harvest, a significant growth of 40% that should help the company continue to grow in the coming years in the general indicators for the production of this biofuel. In the last harvest, for example, the increase was 15% compared to 22/23, with 1.4 billion liters produced.

“Increasing production capacity, both for renewable energy and ethanol, not only leads to advances in terms of competitiveness and business solidity, but also keeps us true to our sustainable growth objectives. We recognize the global challenges of the energy transition, and we are aware that we play an important role in this scenario, so contributing to this agenda of decarbonizing the economy is a priority and we have been looking for ways to increase our relevance,” says Geovane Consul.

Boosting employability in the region

As a result of this expansion project, BP Bunge will create 420 new direct and indirect jobs in Pedro Afonso, increasing the number of jobs to 1,671 (+33%). This move strengthens the company’s position as one of the main employers in the region, since it currently employs 1,251 people at this unit, which corresponds to around 47% of local jobs*.

This positive impact on job creation will already be a reality as of this year, since the executive phase of the project begins next October, with the start of construction, which will mobilize around 600 people at all stages until final delivery, scheduled for July 2026.

* Source: According to the Annual Social Information Report (RAIS 2022), the municipality employs 2,649 people.