Sumitomo invests in biomass in Brazil

Sumitomo Corporation acquired 20 percent of Cosan Biomassa S.A., a subsidiary of the world’s largest sugar & ethanol company, Cosan S.A.Industria e Comercio and producer of sugarcane pellets for power generation, subject to the prior approval of anti-trust authorities in some jurisdictions.

Biomass is a renewable energy source such as solar, wind and small-scale hydro power that provides cleaner, sustainable energy. Such investments in renewable energy are increasingly important with Japan’s commitment to reduce its greenhouse gas emission by 26% by 2030 as part of the Paris Climate Treaty.

Cosan Biomassa has developed a fuel pellet made from sugarcane residues such as bagasse from the sugar mill and straw left over in the sugarcane field, and built a large-scale production plant (annual capacity 175,000 tons) for the first time in the world last September, which commenced a commercial production in December 2015.

Through the participation of Sumitomo Corporation, Cosan Biomassa will increase its exports to Japan and Europe along with increased domestic sales. It is said that there is a potential of 45 million tons/year of sugarcane pellets from the sugarcane farms in Sao Paulo state alone, Cosan S.A. being a dominant player there thorough its group company. With this abundant availability, the venture would aim for 2 million tons by 2025, and as much as 8 million tons in the future, subject to future growth of the market as well as a satisfactory return.