Energy that mobilizes

Empowering businesses

In the search for excellence and a progressive positioning, we mobilized our team to identify new work fronts and innovation through research, technology, partnerships, and initiatives.

New operations

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We invested to keep pace with the growth of the economy in the North and Northeastern regions of Brazil. The idea is to ensure the efficiency in fuel distribution in order to cater to the growing demands in these locations.

We inaugurated a fuel distribution terminal in Marabá (PA) which operates with a railway junction and has a handling capacity of up to 500 million liters per year. The project is an example of agility and excellence: it was built in only 18 months, with zero accidents.

Also in Pará, through a consortium, we will expand our operation in the Port of Santarém, where we plan to invest in improvements in gasoline, diesel and ethanol storage tanks.1

On this same pace, starting in 2018, we will operate a fuel distribution base in the Port of Itaqui2, an industrial complex of the municipality of São Luís (MA). Construction began in 2017 and will be structurally important for the imports of oil by-products into Brazil. The idea is to increase the volume of fuel handled per year in the region (currently at 1.2 billion liters) and reduce the costs of these products locally.

On the other tip of Brazil, we began operating in the city of Cascavel (PR), always pursuing logistical efficiency in the Southern Region.

More specifically in the aviation sector, we began to operate two new dealers at the airports of Canela (RS) and Angra dos Reis (RJ). The beginning of these activities is in line with our expansion plan for the airports in Brazil.

1Source: https://oglobo.globo.com/economia/negocios/raizen-br-distribuidora-arrematam-dois-terminais-no-porto-de-santarem-21104575
2Source: https://sfagro.uol.com.br/raizen-vai-investir-r-200-millhoes-em-terminal-no-porto-do-itaqui/

Innovation and productivity

Cellulosic ethanol

We are one of the first companies in the world to produce second-generation ethanol (E2G) from sugarcane bagasse. Our unit in the city of Piracicaba (SP) began operating in 2014/2015 and, in the last harvest, reached a production of 6.8 million liters.3

This volume is the result of the average yield achieved of 211 L of ethanol for each ton of biomass per dry ton4. Our goal is for the unit to reach a nominal production capacity of 42 million liters of E2G per year, expanding our production capacity by 50% with the same planted area.5

Producing E2G means contributing to the progress of the Brazilian energy matrix and to the global low carbon economy, since ethanol has a carbon footprint 90% smaller than that of gasoline6.

3Source: https://www.energia.sp.gov.br/2017/04/etanol-2g-producao-da-raizen-avanca-mas-deve-ficar-abaixo-de-50-da-capacidade/
4Source :https://economia.estadao.com.br/noticias/geral,raizen-avanca-no-etanol-de-2-geracao,10000089302
5Total bagasse, less moisture.
6Source: UNICA.

Biogas from vignasse

We will be among the pioneers in Brazil in the transformation of byproducts from the ethanol and sugar production processes, (vignasse and filter cake) into biomethane - a gas that can be used to produce electricity. The project is being developed at the Bonfim unit, in Guariba (SP).

In the previous harvest we won an auction (A-5) promoted by the National Electric Energy Agency (ANEEL) to supply electric energy as of 2021. We already initiated a project for the construction of the structure.

In addition to increasing the volume of energy traded, this initiative has the potential to make the Brazilian energy matrix even more renewable.

Impulse to innovation

In the 2017/2018 harvest, we inaugurated an innovation hub to host startups dedicated to innovation in the agribusiness sector, the Pulse. The initiative aims to promote the dissemination of information, solutions, projects, and events, in addition to meetings with specialists from the market and universities - in order to encourage the development of a new innovation ecosystem.

The hub is located in the city of Piracicaba (SP), in the region known as Brazil's agri-tech Silicon Valley, since it hosts 38% of the startups that focus on agricultural technology and is a reference in research in this field, according to Agtech Valley, an agency associated with the Luiz de Queiroz School of Agriculture (ESALQ/USP).

Click here to learn more about Pulse.

Agro-industrial intelligence

Pentágono

In 2016/2017, our intelligence system called Pentágono presented significant results through monitoring agricultural variables in real-time. In the 2017/2018 harvest, we will include monitoring of the industrial variables.

This way, the system will assume two fronts: one in the field and one in the industry. The idea is to ensure operational excellence throughout the entire sugarcane production chain: from preparing the soil for planting to the end product in the production units.

Through constant, real-time monitoring of the agricultural-industrial operations, a better performance was observed in production processes, quality, and safety. The idea is to allow for a continuous and efficient cycle without interferences.

It is important to be agile with the control and monitoring of essential variables in the field and in the industry, but it is the transformation of this data into strategic assessments that assertive decision-making becomes possible.

The results of all this control are noticeable. Planning, optimization, and integration in the field and in the industry have increased productivity of harvesting equipment and of the fleet involved in logistics, as well as the use of the installed capacity at production units given the better flow of sugarcane.

Truck waiting time in front of the production units was reduced from four hours to only one hour. Agricultural equipment also became more productive. Harvesters increased their productivity by 15%, reaching 776 tons per day. The average yield of planters went from 7.5 ha to 9.8 ha per machine per day, an increase of 31%. This allowed for an increase of 12% in the aggregate planted area in April/May 2017, compared with the same period in 2016 - approximately an additional 2,300 hectares.

These are some examples that demonstrate that the road to achieve operational excellence is based on a strategic and global vision of all variables involving the business, including the technical analyses capable of driving industrial capacity and ensuring agility of immediate actions.

Adjustment to the market

In the 2016/2017 harvest, we operated in a favorable scenario for the importing of fuels. We expanded our foreign trade operation from 1 to 10 ports throughout Brazil in comparison with the previous harvest. In order to supply dealers and clients, we needed a process to constantly adapt as a result of the new Petrobras price policy and positioning.

Control Tower

As a result of the increase in import operations, our fleet grew by 20%, which represented 500 additional trucks. To ensure optimization of inbound logistics operations and further advance our work towards greater efficiency, resulting from the Bolt Project, we invested in the improvement in receiving points, technology and professional training.

Control Tower, a center that monitors our fleet was also instrumental in identifying alternatives to the highway mode, such as pipelines, where we made progress in line with logistics diversification and reduction in costs and emissions.

Diversification strategy

We maintained our investments in the integration and diversification of logistics modes. In 2017, we completed the construction of the pipeline connecting the terminal in Paulínia to the pipeline structure of Logum - the company responsible for the development of the pipeline systems for ethanol.

This operation will expand our distribution capacity to more locations. It will also increase safety and reduce emissions of Greenhouse Gases (GHG), since 50 less trucks will be required per month for long hauls.

Our intent is to prioritize and develop alternatives to highway transportation, aiming at greater safety and reduction of costs and GHG emissions.

First in Brazil

We developed the first biofuel loading bay using the Bottom Loading system, which reduces the loading time by half, since it allows for four compartments to receive product at the same time - loading 2,500 liters per minute. Another advantage is the significant gain in safety by eliminating working at heights, as required by the traditional methodology.7

The technology was inaugurated at the ethanol terminal in Barra Bonita (SP), and has already been installed at the terminals of Araucária (PR), Ribeirão Preto (SP) and Paulínia (SP).

Tank cars

Starting as a pilot project at the Paulínia Terminal in SP in the previous harvest, the project advanced in 2016/2017 with the installation of metal arms for unloading tank-cars.

Among the benefits, the initiative reduces the unloading operation time of tank cars by 10.5%.

Efficiency and safety

In May 2016, we inaugurated the tank truck sorting center in Cubatão (SP). Capable of handling 120 vehicles per day, the center aims to contribute with the distribution and marketing of ethanol from our 24 production units, receive imported products and ensure the safety of drivers and contracted vehicles that travel on the Anchieta and Imigrantes highways.

The sorting center also has a logistics cell to monitor port terminals, which ensures the excellence of our operations and enabled the growth in the volume handled at the Port of Santos.

Having cafeterias, dressing room and lodging facilities for overnight stay of drivers operating the port terminals, the initiative avoids parking vehicles on the streets surrounding the facilities and reduces eventual traffic problems in the region.

From Brazil to the world

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In November 2016, we announced7 the creation of RaW, a joint venture with Wilmar Sugar Pte, of the Wilmar Group. RaW operates in origination and exporting of very high polarity (VHP) sugar and is intended to supply the growing demand for this Brazilian product in the global market.

With this joint venture, we have taken an important step to shorten the distance between production and trading of sugar, integrating our chain in much the same way as our fuels operations.

RaW already appears as one of the largest exporters of Brazilian sugar to the world, with an outbound volume of approximately 4.5 million tons per year. 8

7Source: https://www.raizen.com.br/raizen-e-wilmar-anunciam-nova-joint-venture-para-originacao-e-exportacao-de-vhp
8Source: https://exame.abril.com.br/negocios/raizen-e-wilmar-se-associam-para-criar-gigante-acucareiro/

Technology in the fields

Throughout the harvest, we intensified the use of technologies that aim to preserve cultivated areas and increase productivity in the sugar fields. One example is the Autopilot on board tractors and combine harvesters, which provide precision to these machines in the fields, consequently minimizing overrunning plants.

Images of the areas to be planted are made using unmanned aerial vehicles (drones). The information is used to simulate different scenarios, which allows for the identification of better alternatives in order to obtain optimal operational yield, use of area and conservation of soil.

After the planting phase, drones are also used as a tool to assess areas with failure in sprouting, where replanting can be done. This gives managers a satisfactory production potential for crops.

Technology for safety

In 2016/2017, we adopted a supplier fleet monitoring system using telemetry, cameras and GPS. This technology allows monitoring behavior of drivers in order to improve efficiency of operations and safety of professionals. Click here to learn more.