Mato Grosso sees rising eucalyptus investments for biomass

In Mato Grosso, Brazil, a new cycle of billion-real investments in eucalyptus planting is being driven by the demand for forest biomass. This demand is primarily fueled by large agro-industries, particularly corn ethanol plants, which require sustainable energy sources for their cogeneration systems.

Regulatory changes are a key driver of this shift. A commitment signed between the Mato Grosso State Government and the Public Ministry mandates a gradual replacement of native wood with planted forests. By 2035, large agro-industries will be restricted to using only planted forests for energy generation.

To meet official government goals of reaching 700,000 hectares of planted area by 2040, an estimated R$ 8.5 billion in investment is required. Current projections suggest the planted area could reach 165,620 hectares by the end of 2025, though industry representatives warn that the current pace of expansion may need to accelerate to avoid future biomass shortages.