Biomass in Brazil: Gathering Momentum for Biomass Exports

Interview with Eduardo Junqueira, Director of Prospera and Agroiza Florestal

Can you tell us a little bit about the new project of your company?

We have a project to profit from the huge needs of wood in this area. We have been investing in technology and, as time passes, we are going to start producing wood brikets thinking about exportation: there are already Portuguese and Spanish companies interested in buying our products.

With the construction of Transnordestina we are expecting a big growth as far as the internal market consumption is concerned. With the new railway, the export question will definitely be solved and increased. Our main problem is logistics, because we are far away from the harbors.

Today, Piauí is an expanding state in terms of agriculture and, all the deforestation that was legally made produced a huge quantity of unused biomass. Some time ago this biomass was used to produce coal but, because of the steel crisis, there was a decrease of 90% on the national and international demand. Nowadays, we aren’t using this biomass.

But that constitutes an opportunity?

With the export expectation, we can use the 6 million tons of biomass produced each year.

If a foreign investor came here to invest, could he invest in that sector?

Raw-material is abundant and the costs for production are very low. To manufacture a ton of brikets, the cost is around 200 euros and the European market, especially Austria, pays 447 euros for each ton. Our production cost of 200 euros includes sea transport.

While Brazil is growing at a 3 to 4% rate, we are growing at a 9,7% rate each year.

There are several sectors that can use this biomass: from the Pizza house to the heating boilers of hotels. We can produce for the national and for the international market.

There is a lack of information about what Piauí can offer to foreign investors and we are totally prepared to receive any investor that wants to work in partnership with us.

Can you give examples of foreign clients you already have?

I have not yet sold my product, because it’s in a project stage, but the most interested party in this area is Austria. If there is someone interested, I am able to supply all data I’ve put together. I’m not making a secret out of it.

How would you describe Piauí to foreign investors?

Piauí is a state with fertile and cheap land. Many cellulose producers are coming here due to its fertile land and its rain level (it rains regularly).

What kind of message would you like to pass?

My general message is: we need big investors for our state.

Besides biomass, there are also other segments that can be developed. Piauí is the green lung of the Northeast and it’s a very promising state. What we really need right now is to develop the state and attract investors that want to profit from all that we can offer.

Foreign investors will be very welcome in all sectors and in all aspects.

As for the biomass production, investors know that they will have a good existing market, and that all biomass raw-material is extracted according to all environmental laws.