The board of directors of sugar and ethanol producer Jalles Machado approved, at a meeting held on 20th July, investments of BRL517.4 million (US$100.4 million) for the company to expand cane crushing capacity by 1 million tonnes at its two factories to 6.3 million tonnes by 2024/25.
Preliminary data compiled by the Sugarcane Technology Center (CTC) for the first half of July indicate that cane yield in the current season has dropped by 14% to 68.2 t/ha compared to 79 t in 2021.
The top ethanol producers United States and Brazil are expected to reduce output in the coming months because of the surging cost of corn and sugarcane, reported Reuters.
Raízen, a joint venture between Cosan and Shell, is going to invest in the construction of its second cellulosic ethanol unit, with the capacity to produce 82 million litres per year, twice the capacity of its first plant, reported Reuters, citing a securities filing.
Brazil – Raizen invests over US$68 million to upgrade its agricultural fleet and harvesting operations [Full subscriber]
The sugar and ethanol giant, Raízen, a joint venture between Cosan and Shell, invested BRL345 million (US$68.4 million) at the start of the 2021/22 harvest with modern and high-performance equipment supported by data analytics technology which the company says will support cost reduction, while the fleet size will be decreased by 5%.
Millenium Holding Bioenergia recently acquired via auction Usina São Fernando, located in Dourados, state of Mato Grosso do Sul. The company will pay BRL351.6 million (US$67.4 million). The plant, which has been in the process of judicial reorganization and subsequent bankruptcy since 2013, will earn investments of around BRL1 billion (US$191.6 million), in two years, to become a flex unit with the production of sugar and ethanol, both from sugarcane and from corn.
Brazil – Cogen units from sugar mills satisfies electrical energy demand of 18.5% of residential customers [Full subscriber]
In 2020, sugar mills supplied to the country’s 18.5% residential customers electrical power exported to the national grid. When all sectors (residential, industrial and commercial) were factored in, cogen power exported represented 5% of the national supply.
Brazil – Sugarcane production cost for 2021/22 forecast to rise by over 9%, driven by fall in productivity and Covid [Full subscriber]
Combination of a forecast drop in output due to drought and supply chain disruptions due to the Covid pandemic, production cost for the 2021/22 cane crop is projected to rise by over 9%, according to the Confederation of Agriculture and Livestock of Brazil (CNA) and the economics and business management continuing education program Pecege.
Brazil – Analysts estimate drop in 2021/22 cane production in Centre-South at between 530 million and 580 million tonnes [Full subscriber]
The third driest summer this century is adversely impacting sugarcane production in Brazil’s Centre-South (which accounts for some 90% of total output). The 2021/22 cane output is projected by analysts to be between 530 million and 580 million tonnes.
Brazilian production of ethanol from corn rose 58% in 2020/21 as dozens of recently built plants in the country’s grain heartland ramped up production. Analysts project a further increase of around 25% for 2021/22, reported Reuters.