BP Bunge projects 60% increase in sugarcane biomass sales

With the increase in the volume of sugarcane harvests across Brazil in recent years, BP Bunge Bioenergia, one of Brazil’s leading ethanol, sugar and bioelectricity producers, plans to use part of the sugarcane bagasse it produces to supply industries in different sectors.

The forecast is that, for the 2024/25 harvest, the company will supply around 400,000 tons of sugarcane biomass, compared to 250,000 tons in the 2023/24 harvest, positioning BP Bunge among the largest suppliers of sugarcane bagasse in the Brazilian market and a relevant player in meeting the demands related to the energy transition.  

For the 2023/24 harvest, BP Bunge projects a contribution margin of R$15 million from the sale of biomass in Brazil. “The scenario is very positive, and we have room to grow and serve other sectors, in order to gradually replace the use of fossil fuels in large industries,” says Ricardo Carvalho, the company’s commercial director.

With growing global concern about climate change and the search for renewable energy sources, the biomass market has gained prominence as a sustainable alternative. According to José Piñeiro, BP Bunge’s commercial manager for energy and biomass, the company has been investing in long-term contracts for the supply of sugarcane bagasse since the 2022/23 harvest.

“Companies are looking for efficient and renewable solutions. With our biomass availability expected to increase in the 2024/25 harvest, we will be able to serve other industries, providing a source of clean energy for sectors that produce soy, orange juice and animal protein, for example,” says Piñeiro.

In Brazil, a country with vast natural resources, biomass represents a significant opportunity to boost the energy matrix in a cleaner and more efficient way. “Sugarcane bagasse is an energy generator with high production potential, since it costs less and lasts for approximately 9 months, which means that companies that use it in their production have a renewable and competitive option,” says Carvalho.

Bagasse, which comes from sugarcane production, is a biomass rich in fibers that can be used for various purposes, such as generating steam and electricity, producing 2nd generation ethanol (also known as cellulosic ethanol) and also as a supplement for animal feed.