Brazil Suzano mothballs biomass-to-energy project

(SeeNews) - Mar 15, 2013 - Brazilian paper and cellulose maker Suzano (SAO:SUZB5) said this week it had suspended a project of its start-up renewables arm Suzano Energia Renovavel envisaging the production of biomass for energy generation.

Suzano had plans to invest USD 1 billion (EUR 765.3m) in the construction of three wood pellet manufacturing units in the Northeast with capacity of 1 million tonnes each. The wood pellets would have been used for thermal power generation and destined to foreign markets.

The company explained that the project will remain shelved until net debt to earnings before interest, taxes, depreciation and amortisation (EBITDA) ratio is reduced to 2.5 times, stressing that the resumption of its development would also depend on the general macroeconomic and market conditions.

(USD 1 = EUR 0.765)

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