BRAZIL - Eletrobras, the largest energy company in Latin America, and Suzano, the world's leading pulp producer, have announced a partnership aimed at exploring sustainable solutions such as green hydrogen and synthetic fuels.

The collaboration will focus on studying the technical and economic feasibility of using biogenic CO2, a natural byproduct of Suzano's pulp production process, to develop new forms of sustainable fuels.

"This strategic cooperation agreement lays the groundwork for evaluating the feasibility of producing sustainable fuels to meet the increasing demand for low-carbon hydrogen and its derivatives in both domestic and international markets," stated Ítalo Freitas, Vice President of Trading and Energy Solutions at Eletrobras.

Biogenic CO2 is produced during the combustion of biomass and black liquor from Suzano's pulp mills. It can be captured at the source and combined with renewable hydrogen generated through water electrolysis to produce synthetic, environmentally friendly fuels, particularly e-methanol. The partnership will also assess the potential for establishing a synthetic fuel production facility.

"We believe this joint study with Eletrobras will enhance Brazil's competitive position in the global bioeconomy and could significantly contribute to the energy transition and decarbonization efforts, particularly in transportation. E-methanol, derived from renewable sources like biogenic CO2 and low-carbon hydrogen, holds strong potential to replace fossil fuels, especially in the maritime sector," commented Paulo Squariz, Energy Director at Suzano.

Discussions on this partnership began in the latter half of 2023 and underscore Eletrobras' commitment to sustainable development, innovation, and the energy transition. Eletrobras has recently entered into Memoranda of Understanding (MoUs) with other companies and state governments to advance renewable hydrogen production in Brazil.

Suzano, renowned for its leadership in the green energy sector and its production of bioproducts from eucalyptus, is a key player in global markets for lignin, microfibrillated cellulose (MFC), and other materials used in textiles, rubber, and chemical applications. The company is also a leading global producer of pulp, paper, packaging, and consumer goods.

Suzano's substantial presence in Brazil's green energy market includes an installed capacity for energy generation currently at 1.3 gigawatts, set to expand to approximately 1.7 gigawatts with the completion of its Cerrado Project in Ribas do Rio Pardo, Mato Grosso do Sul state.