Brazil's northeast states will sustitute sugarcane for eucalyptus as a feedstock for energy production due to the increasing difficulties with sugarcane harvests.
The sector expects that in three years eucalyptus cultivation will take up an area of 20,000 hectares (49,421 acres) in Pernambuco and Alagoas states, the main sugarcane growers in the northeast, business paper Valor Economico reported on Monday.
The trend setter is the Petribu plant, part of the local conglomerate Petribu Group. The plant targets to harvest about 400 tonnes of chopped wood in order to generate 400 MWh of power annually by 2021.
The company's president Jorge Petribu told Valor Economico that the transition from sugarne bagasse to eucalyptus wood can increase its revenue from energy generation by 20%.
Pernambuco's Sugar Association (Sindacucar) estimates the state's biomass-fired installed capacity at 300 MW, with 125 MW more for sale, Valor Economico noted.