Sumitomo has agreed to acquire a 20% stake in Cosan Biomassa, a Brazilian producer of sugarcane pellets for power generation.

The company has initiated a strategic collaboration with Cosan Biomassa’s parent company Cosan Industria e Comercio for development of the sugarcane pellet business through Cosan Biomassa.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

The investment from Sumitomo will help Cosan Biomassa increase its exports to Japan and Europe, along with increased domestic sales.

"Pelletised biomass is a new commodity being created to serve the low-carbon economy."

Cosan Biomassa has developed a fuel pellet made from sugarcane residues such as bagasse from sugar mill and straw leftover in sugarcane fields.

In September 2015, it built a large-scale production plant with an annual capacity of around 175,000t and started commercial production in December.

The partnership aims to produce two million tonnes of sugarcane pellets by 2025 and up to eight million tonnes longer term.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Cosan Biomassa CEO Mark Lyra said: "Brazil is already among the largest producers and exporters of agricultural commodities in the world. Pelletised biomass is a new commodity being created to serve the low-carbon economy.

"By making use of sugarcane residues and benefiting from the economic and environmental advantages that the shift to rail logistics brings to the game, Brazil is positioned to become the Saudi Arabia of renewable energy."

According to Sumitomo, Japan is anticipated to use nearly ten million tonnes of pelletised biomass in power generation by 2030.