Bracell is seeking environmental permission to explore the construction of a new 2.8 million tons per year pulp mill in Agua Clara, Mato Grosso do Sul state, which actively supports such projects as part of its expansion plans in Brazil.
Brazilian pulp and tissue producer Bracell confirmed to Fastmarkets on Tuesday, August 27, that it has applied for an environmental license to analyze the feasibility of building a new pulp mill in the city of Agua Clara in the central-western Brazilian state of Mato Grosso do Sul.
As mentioned earlier, Bracell has been expanding its plantations in the state, initially sourcing wood for its star project in neighboring São Paulo state, where it launched two flexible pulp lines in 2021 with a combined capacity of 3 million tonnes of bleached per year. Eucalyptus kraft (BEK) pulp or 1.5 million tons of dissolving pulp (DP).
Fastmarkets also contacted Mato Grosso do Sul Minister of Environment, Development, Science, Technology and Innovation Jaime Elias Verruck, who said that an agreement had been signed last week with Bracell, which intends to install a 280 kWh plant in the state. A 10,000-ton factory.
“Bracell already has a strong forestry base in the state as well as a nursery… The company has about 2,000 workers in the state, where it initially grew timber (for its factory in São Paulo state) and sourced wood, but has since grown to The phases for building a new plant could be studied,” Verruck said.
Mato Grosso do Sul actively supports pulp projects
The secretary confirmed that the state of Mato Grosso do Sul remains very active in supporting new pulp projects, citing the new Suzano Cerrado project and Arauco’s plan to build a 2.5 million tons/year project there as positive examples.
“We will now develop the financial incentives and licensing scheme, a process that will take approximately a year. With this new project we will transform Mato Grosso into a ‘Pulp Valley’, attracting innovation and qualifications to the region “As a counterparty, the state faces the challenge of continuing to provide road and rail infrastructure and a qualified workforce,” Verruck added.
According to the secretary, Bracell is currently in the stage of obtaining the previously mentioned license, followed by an installation license allowing the start of construction, and an operating license authorizing the start-up.
“We believe that the installation permit will be issued in about a year after all environmental, monitoring and public impact studies are completed. After that, it depends on the timing of when the company decides to proceed with the project,” Verruck said.
