Brazil's Eletrobras, Suzano form synthetic fuels partnership

Brazilian power distributor Centrais Eletricas Brasileiras SA (BVMF:ELET6), better known as Eletrobras, and paper and pulp producer Suzano Papel e Celulose (B3:SUZB3) will conduct research into the production of synthetic fuels from biogenic carbon dioxide (CO2) and renewable hydrogen.

The two companies have signed a memorandum of understanding (MoU) for a strategic cooperation that could eventually lead to the construction of a synthetic fuel production unit.

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Eletrobras explained in a statement that biogenic CO2 generated from the process of burning biomass and black liquor from cellulose production can be captured and mixed with renewable hydrogen to produce clean, synthetic fuel such as e-methanol.

In recent months, Eletrobras signed a series of memorandums of understanding aiming to expand its studies on renewable hydrogen and its derivatives, including an MoU with the government of Ceara state.

At the same time, Suzano is already one of the largest producers of energy from biomass in Brazil, having a total installed power generation capacity of 1.3 GW that is expected to increase to 1.7 GW once a new pulp mill is finalised in the state of Mato Grosso do Sul.