Government prepares auction to contract energy from biomass power plants

News21 de April de 2026
Government prepares auction to contract energy from biomass plants
SÃO PAULO (Reuters) - The Ministry of Mines and Energy is expected to soon hold a bidding process to secure the purchase of electricity production from biomass-powered generation plants, which is happening in the face of a water crisis that has put pressure on the levels of Brazil's hydroelectric reservoirs.
"The forecast is that the public consultation ordinance for the guidelines of the biomass contracting auction will be published by the end of this month," the ministry said in a statement.
A survey by the Union of the Sugarcane Industry (Unica) and the Association of Cogeneration Energy Industry (Cogen) indicated that biomass plants mainly powered by sugarcane bagasse could generate an additional 1,249 gigawatt-hours (GWh) of energy between July and December 2021, and more than twice that in 2022 with government incentives, such as an emergency auction to purchase the extra production.
THE USE OF EUCALYPTUS WOOD CHIPS FOR ENERGY GENERATION as an alternative.

One of the most used renewable fuels in Brazil is the wood chips produced in planted eucalyptus forests.

It is an extremely viable option to supply thermal power plants, generating a minimal impact on the environment and an alternative for energy production. The eucalyptus tree, to be turned into wood chips, is usually processed in the field using Lippel forest chippers.