Suzano Teams Up With Mitsui to Drive Bioeconomy Plan

Suzano, Brazil’s leading paper and pulp producer, has partnered with Japan’s Mitsui & Co to advance its bioeconomy plan, focusing on sustainable biomass development. The agreement, signed in January, aims to create new bioproducts using biomass from Suzano’s vast eucalyptus farms and pulp production by-products. While no capital expenditure commitment is included, future joint investments are possible. The collaboration leverages Suzano’s environmentally friendly and cost-effective biomass to explore new product domains, potentially revolutionizing existing markets.

Christian Orglmeister, Suzano’s executive director for new bio-businesses, emphasizes the renewable nature of the biomass, highlighting its potential to replace fossil-based products and contribute to global decarbonization. The companies are open to various technologies for product development, from cutting-edge research to adapting industrial processes.

The Mitsui agreement aligns with Suzano’s broader bio business strategy, which includes subsidiaries like FuturaGene and joint ventures like Woodspin. Suzano also invests in startups and spinouts in areas such as agtech and sustainable packaging solutions under Suzano Ventures, its $70 million corporate venture capital arm.

Orglmeister acknowledges the challenge of scaling up bioproduct production and achieving cost-competitiveness with fossil-based alternatives. He cites Suzano’s extensive database of the eucalyptus genome as a significant asset for research and development. The partnership with Mitsui, with its expertise in global trade and customer relationships, will help qualify the commercial and market potential of new bioproducts.

Concerns have been raised about Suzano’s large-scale monoculture practices, including water depletion and land degradation. Suzano, however, claims its eucalyptus plantations are primarily on already degraded land, not converted from native forests. The company sets aside 40% of its land for conservation and is restoring 37,000 hectares of degraded areas in Brazil. Techniques like mosaic planting and geospatial intelligence are used to reduce monoculture impacts on biodiversity.

Suzano announced its participation in Biomas, a company focused on forest restoration, conservation, and preservation in Brazil, at the COP27 Climate Conference. Biomas aims to restore and protect 4 million hectares of native forests over 20 years, involving companies like Santander, Itaú, Vale, and Marfrig.

The partnership between Suzano and Mitsui represents a significant step in advancing bioeconomy initiatives, leveraging sustainable biomass for innovative bioproducts while addressing environmental concerns and promoting conservation efforts in Brazil.