Dec 09, 2009
Largest Sugar Mill In Northern Brazil Set To Open In Tocantins
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
The largest sugarcane mill in northern Brazil is set to open in June of 2010. It is located in the northern state of Tocantina and the mill is owned and operated by Bunge. The sugar mill is being touted as an example of the best in sugar/ethanol/electricity production. Once operational, the mill is expected to produce on an annual basis, 126 million liters of ethanol, 180 thousand tons of sugar, and 317 gigawatts of electricity.
One of the reasons why Brazilian sugar mills are so economical is because they can produce more energy than they consume. The energy to operate the mill is produced by burning the leftover cane once the juice has been squeezed out. In the case of the Bunge mill, 40% of the electricity that is produced will be used to operate the mill and 60% of the electricity will be sold back to the grid. Nationwide, it is estimated that sugar mills selling their excess electricity back to the grid are supplying about 3% of Brazil's electrical needs.
In order to supply this new mill with raw product, 7,500 hectares of sugarcane have already been planted and that is expected to eventually increase to 50,000 hectares of sugarcane once everything is fully operational.
Brazil has developed a system of zoning for where various crops can be grown. As far as sugarcane is concerned, over 64 million hectares of land are deemed suitable for sugarcane production with 19 million hectares having a high yield potential. In the state of Tocantins, 1.14 million hectares of land, spread over 103 municipalities, is deemed suitable for sugarcane production.