This document provides an overview of opportunities for wood pellet and chip production and export from Brazil. It discusses the global pellet market and supply trends. Brazil is well-positioned for biomass exports due to its large renewable resources including water, arable land, sunlight, and advanced agricultural science. The country has high forest productivity and is one of the world's most competitive suppliers of wood pellets. Brazil's pellet exports have grown significantly in recent years. The document analyzes production and trade data and forecasts further increases in global pellet demand, positioning Brazil well for future market expansion.

1. Opportunity for pellets production in South America
Basic data on the global market and supply from Brazil
Claudio Langes Pesenti, Managing Director
May – 2018
Brazil Register CNPJ : 22.225.637/0001-19

2. Terminology

3. Pellets
(600 kg/m3; moisture 7%; 17.5 Mj/kg; ash 0.7%)*
Pellets are more standardized than chips, since the industrial processing so that every
pellet has very similar (and higher) density and one-digit moisture. Those mean lower
relative logistic cost. With uniform density of wood pellets and lower moisture, it is
easier for the heater to provide a predictable, even rate of heating over a period, a
concept referred to as being in "steady state“. Heat systems running at steady state
will be more efficient and provide more reliable indoor comfort. Another critical
advantage of pellets is the lower smoke and particulate matter emission.
Wood Chips
(250 - 300 kg/m3; 25% - 45% moisture ; 13.5 – 9.5 Mj/kg; 1.0 – 1.5% ash)*
Lower industrialization, cheaper than pellets (even the higher relative logistic cost,
wood chips still shows lower $/Mj, compared to pellets). They are chipped woody
biomass in the form of pieces with a defined particle size produced by mechanical
treatment with sharp tools such as knives. Wood chips have a sub-rectangular shape
with a typical length 5 to 50 mm and a low thickness compared to other dimensions.
Cutter chips, forest chips, green chips, stemwood chips, and whole-tree chips.
*There are independent commercially acknowledged standards issued for
pellets and wood chips, so the values above may vary accordingly.

4. Pellets
Global Market

5. (16.5 Gj/tonne)
Industrial EU pellet specs are different according to applications Residential
Compared to A1 residential grade, industrial grade presents:
• Lower requirements for diameter, length, temperature, ash
content, mechanical durability and fines.
• Higher requirements for bulk density variation.

6. Compared to A1 residential grade, industrial* grade presents:
• Equal requirements for Nitrogen and Mercury.
• Lower requirements for all other pollutants.
*The industrial specs listed above refer to industrial grade I2 (the most
commonly traded grade). Other industrial grades (I1, I3) are shown in this study.
*The “ENplus B” shows tolerance levels for pollutants, ash and smoke, which are
between the industrial and the residential grades (A1 and A2). So “ENplus B” is
normally driven to non-residential applications as commercial buildings and
small industries that are not driven to electricity or heating distribution.
Industrial EU pellet specs are different according to applications Residential

7. Top 10 pellet consuming countries
2016
Global wood pellet demand
2016

8. Industrial pellet supply-demand balance

9. World demand forecast 2025: Industrial + Residential use = 60 Mtonnes/y
Industrial 2025 = 40 Mtonnes/y (15% pa) Residential 2025 = 20 Mtonnes/y (5% pa)
30,000
20,000
10,000
Replacing
nuclear?
Annual average market growth: ~3.8 Mtonnes/y

10. The forecasted prices for long term agreement grow smoothly…
… but the spot market prices are very volatile

11. Additions to global wood pellet production capacity (as of 2Q 2017)

12. Pellets
European Market

13. The future in the European Union: in 2017, electricity from wind, solar and biomass
exceeded that from coal for the first time
biomass
solar
wind
Hard coal
& lignite
TWh
21%
6%
4%
11%

14. EU imports goes high, while internal production (excl. Russia) remains stable
www.aebiom.org

15. Non-residential use takes 57,8% of pellets in Europe, mainly by the “Power only”
plants, which consumes 33,1% of the total pellets volume.

16. 2015: Italy 3.1 Mton for heating and UK 5.7 Mton for electricity

17. 2016: Italy 3.2 Mton for heating and UK 6.4 Mton for electricity
2016

18. The sizes of figures were redimensioned to keep the same scale for the price axis
Czech Rep Bosnia Hz Montenegro Serbia Albania Poland Lithuania Ukraine
Italy Germany Greece France Austria Spain Sweden Bosnia Hz
Prices 2014 – 2017: €/ton; 1 pallet; 15 kg bags; at retail store; incl. VAT

19. Prices 2014 – 2017: €/ton; 1 truck; 6 ton bulk; delivered 100 km; incl. VAT
The sizes of figures were redimensioned to keep the same scale for the price axis

20. Pellets
Supply from Brazil

21. Brazil is 1 of the 3 giants (2017)
Bangladesh
Pakistan
Phillipines
Nigeria
Russia
Australia
Canada
United
States
China
Indonesia
Mexico
India
Japan
Germany
United
Kingdom
France
Italy Spain South
Korea
Brazil
*GDP > $ 1 tri
*GDP > $ 2 tri
Area > 7 M km2
Population > 100 M
*International Monetary Fund - World Economic Outlook Database, April 2018

22. Brazil is 1 of the 3 giants (2017)
Pakistan
Russia
Australia
Canada
United
States
China
Indonesia
India
Japan
Germany
United
Kingdom
France Brazil
*GDP > $ 2 tri
Area > 7 M km2
Population > 200 M
*International Monetary Fund - World Economic Outlook Database, April 2018

23. Source: http://unctad.org/en/PublicationsLibrary/wir2017_en.pdf
After China, Brazil is the most preferred for Foreign Direct Investment, among emerging economies

24. Source: http://atlas.media.mit.edu/en/visualize/tree_map/hs92/export/bra/all/show/2016/
Brazil total amount of exports worldwide in 2016: US$ 226 billion
Wood products $ 2.91 bn
Cellulose & paper goods
$ 8.55 bn

25. Surplus
Deficit
1995 2015
15 highest surpluses and deficits in the Balance of Trade for agricultural products (US$ bn)
Source: WTO merchandise trade values annual dataset
- Total 15 : US$ 147 bn
- USA with highest surplus.
- Canada 2nd highest surplus
- Netherlands with 3rd surplus
- No significant surplus in Asia
- Subtotal 4 European: US$ 38 bn
- Subtotal 4 Asean: US$ 21 bn
- Total 15 : US$ 194 bn
- Japan had the highest deficit
- China mainland had no significant deficit
- European countries pravailed after
Japan; Germany first in Europe
- Significant deficit in Russia
- Subotal 6 European: US$ 66 bn
- Subtotal 4 Asian deficits: US$ 90 bn
- Total 15 : US$ 304 bn (+107%)
- Brazilian leadership (8 → 69 bn)
- USA eliminates its surplus
- Argentina raises to 2nd (10 → 32)
- Canada down to 4th (20 → 25)
- Big growth in Indonesia, Thailand
- Ukraine, Spain and Poland replace
Denmark and Ireland in Europe
- Subtotal 4 European: US$ 55 bn
- Subtotal 4 Asian: US$ 57 bn
- Total 15 : US$ 360 bn (+85%)
- China replaces Japan in highest deficit
- Middle East replaces Europe in 3rd
- Outstanding growth of deficit in UK
- Russia eliminates the deficit
- 2 Asian and 1 African replaces
3 European out of the 15
- Subtotal 3 European: US$ 68 bn
- Subtotal 7 Asian: US$ 210 bn
MiddleEast (WTO) : Bahrain, Iran, Iraq, Israel,
Jordan, Kuwait,Lebanon, Oman, Qatar, Saudi
Arabia, Syria, United Arab Emirates, Yemen
WTO Agriculturalproducts:SITC sections 0, 1,
2, 4 minus 27 and 28. Includes animal products,
dairy, forestry, all beverages and tobacco.
Brazil has shown the world’s highest surplus in agro trade, and China the highest deficit

26. What are the reasons for such a
strong agro trade growth in Brazil ??

27. ... one of the major reasons is that
biomass productivity =
water x soil x sun x science3
what are the reasons for such a
strong agro trade growth in Brazil ??
... and no other country in the world offers such a product of
these 4 factors above in higher amount than Brazil

28. In: “Os desafios da Soja no Brasil”. Apres. APROSOJA, jun 2010
Fresh water availability

29. According BrasilAgro,
Brazil has almost 25% of the
world's land with more than
975 mm of rain per year.
Water and energy crops
energy crops (forestry & others)

30. World’s largest arable land area: cerrado (savannah)
cerrado energy crops (forestry & others)

31. “Mapeamento dos Recursos de Energia Solar no Brasil”
Divisão de Clima e Meio Ambiente – INPE
Labsolar – UFSC, 2007 média diária
Sun in Brazil and forestry assets
forestry only (all purposes)

32. Science
on productivity
(EMBRAPA agro
research company)
Science and agro productivity in Brazil – example from grain crops
Area - 000 ha
or
Production - 000 tonnes
Productivity
Kg / ha

33. Science and agro productivity in Brazil – example from forestry
Brazil as a whole International Paper Company
São Paulo state farms

34. Railways and energy crops

35. 2011: Brazil the 4th most
competitive on pellets
ARA = Amsterdam, Rotterdam, Antwerp
2016: Brazil the 2nd most competitive on pellets
Practically tied with the Russian price,
if considering coastal pellet mills
162.0
161.0
176.5
173.5
220.0
190.0
6
8
8
2 4
0
5
6
Pellet Cost Breakdown
2016 CIF UK

36. Brasil x Russia: analytics of the cost breakdown changes from 2011 to 2016
162 161
8
2
Russia
2011 / 2016
190
6
8
200
5
6
4
0
Brazil
2011 / 2016

37. Brasil sounds to be the
most competitive for
pellet supply
162
190
6
8
4
0
Brazil
2011/2016
Essay towards a more reliable cost increase for CAPEX in Brazil from 2011 to 2016

38. Brazil offers the word’s highest productivity in forestry production
www.iba.org

39. Brazil offers the word’s highest productivity in forestry production
• 1 m3 of wet pinus with bark is equal to 0.828 tonne, resulting in 25.7 tonne/ha.year. 1.58 M ha of pinus,
under 25.7 tonne/ha.year, is able to produce 41 Mtonne of pinus per year.
• 1 m3 of wet eucalyptus with bark is equal to 0.868 tonne, resulting in 31.2 tonne/ha.year. 5.67 M ha of eucalyptus,
under 31.2 tonne/ha.year, is able to produce 177 Mtonne of eucalyptus per year.
Potential values for Brazil :
www.iba.org

40. • Last years of crisis reduced internal consumption, so the FDI in forestry (large stocks available) and wood
products (strongly dependent on internal demand ) were kept lower.
• However, FDI in paper & pulp was kept in high, due to the world’s best competitivess on forestry and cellulose
production. The later is strongly oriented (70%) to exports, then not being affected by the internal crisis.
www.bcb.gov.br
Last years of crisis in Brazil have not reduced the FDI in the Paper & Pulp sector

41. Brazil independent wood suppliers raised from 13% in 2006 to 42% in 2016
7,84 M ha
www.iba.org

42. FAO – global forest products facts and figures 2016
17.2; 59%
2.6; 9%
9.2; 31%
0.2; 1%
LAC = latin america
and caribbean

43. Planted trees coverage area 2015 World production 2016: Forest-based energy products
Mton
Mm3 Mm3 Mm3
Mton Mm3
Source: faostat

45. 12% of the biomass (normally the bark) goes to burning for drying the raw material

46. 72% 64% 64%
59%
Essays on the cost
breakdown structure

47. Typical mix of a
Canadian
pellet plant

48. 40,000 tonnes plant (5 t/h * 8,500 h * 95% efficiency)
Essay on the statement of income for a year
NO bank funding

49. Brazil pellets production - Kton

50. Brazil pellets exports: tonnage x price

51. Brazil pellets exports: tonnage x revenue

52. UK
7,086
97%
USA
4,128 $188
$129
Canada
1,385
$156 $125
Latvia
939 $156
$163
Estonia
200
$153
$145
Italy
1,664
75%
Croatia
150 $159
161
Slovenia
99 $201 $215
Korea
1,717
99%
Viet Nam
Malaysia
Indonesia
Denmark
2,054
93%
596
$142
$125
573 $140
$137
Russia
258 $137
$167
Sweden
27 $147 $113
Belgium
906
98%
Germany
423
71%
Poland
Austria
392
96%
Romania
190 $169
$160
Czech Rep
83 $187
$191
104 $167
$178
459
$208
$218
107 $214 $201
1,255
$97 $?
199 $100 $99
76
$107 $84
126 $113
$67
533 $177 $123
237 $158
$124
86
$134
$92
102
$169
$ 153
51
$227 $165 53
$134
$108
Japan
347
93%
62 $133 $?
133 $136 $104
173
$160
$184
84
$162 $146
158
$205
$193
Major Pellet Importers
Total IMP - all world countries (kton)
% of IMP supplied by the combined arrows
378
288
235
149
296
85
Brazil
36
33 $187
$160
Source:
Trademap.org
(United Nations)
94
$135 $123
73
$181
$163
73 $163
$246
Portugal
Netherlands
141
38%
2016: 82% of the global trade flows prices of wood pellets (44.01.31.00), as declared by IMPORTERS – kton; $CIF price; $FOB price
168 $147
$145
UK 61
ITA 19
RUS; 61
$139 $111
94
$187
$146
143
$137 $135
33 $238
$251
20 $160 $282
LAT 47
$200
$170
86 $212
$224
World trade2016: ~17,000 kton/y
World forecast 2025: ~42,000
- Japan 2025: 9,000, or 33,000 kton/yin
2030 if nuclearis replacedby biomass
- Korea 2025: 8,200 kton/y
5 largest exporters 2016: 11,000
5 largest importers 2016: 13,500 (79% of the world)
5 largest importers 2025: 34,600
Sum of blue arrows 2016: 13,227 (78%)
50
$171
$102
ITA 63; JPN 260; KOR 35
CAN;
63
$172
$131
CAN; 261 $192 $131
CAN; 35
$157 $123
0 $0 $0 13 $286 $194
12
$135 $232
0 $0 $0
7
$116
$98
Kton ; CIF price; FOB price
US$/ton (average)
635
$156
$125
ITA
30
$161
$146
4,709
2,373
332
1,611
946
610
358
215
257
Lithuania
47
125
54 $147
$132
33 $152
$143
19 $283 $163
15 $243
$188
307
1,326
1,073
228
LIT 68
$190
$187
USA;
19
$215
$?
Country total exports in the reference year

53. Wood Chips
Supply from Brazil

54. Wood Chips is a cutted material, and Hog Fuel is a crushed material
Wood chips take the form of pieces with a
defined particle size produced by
mechanical treatment with sharp tools such
as knives. Wood chips have a sub-rectangular
shape with a typical length 5 to 50 mm and a
low thickness compared to other dimensions.
Hog fuel is wood fuel in the form of
pieces of varying size and shape,
produced by crushing with blunt tools
such as rollers, hammers, or flails. Hog
comes from the Norwegian word
hogged, that means chopped in English.
ISO 17225 - Fuel specifications and classes
It consists of the following parts:
Part 1: General requirements
Part 2: Graded wood pellets
Part 3: Graded wood briquettes
Part 4: Graded wood chips
Part 5: Graded firewood
Part 6: Graded non-woody pellets
Part 7: Graded non-woody briquettes

55. Introduction to wood chips specifications according to ISO EN 17225

56. Wood chips specifications according to ISO EN 17225
“Solid biofuels - fuel specifications and classes”
Part 1 (EN 17225-1)
General requirements
Part 4 (EN 17225-4)
Graded wood chips
NOTE
The European normatization rules, including EN 17225, normally measure the moisture contents considering the TOTAL
WET MASS as denominator of the ratio for moisture (M % in weight over wet basis).
The Brazilian normatization NBR 14929 sets the moisture measurement procedures for biomass. This norm considers the
DRY MASS as denominator of the ratio for moisture. The sawn wood and energy wood sectors follow this rule (dry basis).
However, the Braziliancellulose sector follows the European logic of measurement (wet basis).

57. Example of product declaration for wood chips: Grade B2
EN 17225 - 4

58. ▪ MSW = Municipal Solid Waste
▪ RDF = Refuse Derived Fuel = MSW
concentred to higher energy
▪ PDF = Packaging Derived Fuel : when not
included in MSW, present lower
challenges than MSW and RDF
• Consumer PDF = residential sources
- PDF plastic mix only
- PDF wood + plastic
- PDF paper +wood
▪ RF = Refuse Fuel condensed to Pellets
(plastic contents)
▪ Fiber Residues = from wood and other
agricultural sources
▪ Peat = fossil turf from the soil
fuel rank
Solid fuels matrix, according to heating value and challenge for use
MJ/kg Eija Alakangas, VTT
Bio-only fuels

59. Eucalyptus species differ in Brazil, and so the density differs too
Moisture of wood have impact on density and on heating value
Fresh wood (~56% moisture, over dry mass)
Eucalyptus specie g/cm3 Age (years)
▪ Eucalyptus grandis is the most common type of firewood in Brazil
▪ The moisture of fresh E. grandis wood is here assumed as 56%
▪ The density of fresh wood is here assumed as 0,480 g/cm3 or 480 kg/m3
▪ The density of wood chips from E. grandis is here assumed 300 kg/m3
farm 1
farm 2
farm 3
farm 1
farm 2
farm 3
farm 1
farm 2
farm 3
farm 1
farm 2
farm 3
farm 1
farm 2
farm 3
farm 1
farm 2
farm 3
Wood Lower Heating Value
kcal/kg | MJ/kg | MWh/ton
Wood density (in average):
Softwood (pinus) Hardwood (eucalyptus)
5,167 | 21,600 | 6
4,306 | 18,000 | 5
3,445 | 14,400 | 4
2,584 | 10,800 | 3
1,722 | 7,200 | 2
861 | 3,600 | 1

60. Solid fuels needed for:
1 GJ = 0.278 MWh = 0.239 Gcal = 0.948 MM BTU 10 MWh = 36 GJ = 8.60 Gcal = 34.12 MM BTU
m3
Hans Hartmann
TFZ - Technologie- und Förderzentrum im Kompetenzzentrum für Nachwachsende Rohstoffe
Eija Alakangas
VTT - Technical Research Centre of Finland
64
0,33

61. NOTE
2018 values are
estimated by linear
regression, taken
by realistic values
up to end of May.
Source:
comexstat.mdic.gov.br
1.6 Mton

62. Solid biomass fuels is the most used renewable energy source in EU-28
▪ Biomass Energy use (solid fuels, liquid fuels and bioelectricity) is 59% larger than all other Renewable Energy Sources combined (wind, sun, hydro...).
▪ Solid biomass fuels use (wood chip, pellet, logged wood...) is 15% larger than wind + sun + hydro altogether. Wood chip is the most traded solid biofuel.
Bioenergy = Energy from the biodegradable fraction of products, waste and residues from biological origin from agriculture (including vegetal and animal substances),
forestry and related industries including fisheries and aquaculture, as well as the biodegradable fraction of industrial and municipal waste.
other RES 7% = 72.2
bioenergy 10% =114.6 (59% larger than other RES: wind + sun + hydro)
fossils 83% = 934.6
solid biomass 74% = 82.9 (15% larger than wind + sun + hydro)
liquid fuels 12% = 14.2
bioelectricity 14% = 15.3

63. *When considering heating devices lower than 1 MW,
marketed wood chip may be even larger source than
residential fire wood log, which is locally sourced.
1 ktoe = one thousand tonne of oil equivalent = 41.87 Giga joules
Wood chip is the most traded solid biofuel in EU-28, and probably* the most used one

64. Comparison of wood chips and pellet in the industrial consumption
Plants > 100 MW (electricity + heat)
will increase this consumption
strongly in next years.
odt = oven dried tonne = weight of wood fiber with no moisture at all

65. 2016: A new era for the wood chip market www.hawkinswright.com
Wood chips have been used in Europe for power and heat in small-scale plants (<20MW), using locally-sourced wood.
However, since 2016 there is a trend for larger wood chip projects for combined heat & power (CHP).
▪ 2016 - Sweden Exergi, formerly Fortum Värme: Vartan plant 130 MW electric (MWe) and 280 MW thermal
(MWth); 1Mt/y (green tonnes) of wood chips.
▪ 2017 - Denmark’s Ørsted, formerly Dong Energy, has shifted its focus away from wood pellets, choosing wood
chips for its latest fossil fuel plant conversions. Skærbæk unit #3; 95 MWe/320 MWth CHP plant; 450 kt/y.
Ørsted also has plans to convert its Asnæs unit #6 and Esbjerg plants to wood chips.
▪ 2017 - France, Uniper (2017): Gardanne plant 150 MWe / 500 MWth; 850 kt/y of wood chips.
▪ 2017 - Finland’s TSE: cofiring biomass at its 146 MWe / 250 MWth multi-fuel CHP plant and plans to increase its
biomass use to around 60-70% by the end of 2018, which will be equivalent to around 1 Mt/y of wood chips.
▪ 2019 - Danish utility HOFOR: Amager plant will bring online its 150 MWe / 500 MWth BIO4 in 2019/20, which
alone will consume 1.2 Mt/y of chips.
The new projects over 50 MWe are unlikely to fulfil all their requirements from European resources alone. That issue
was further highlighted this winter when tough weather conditions hampered forest harvesting in the Baltic region and
caused a significant shortage of wood chips and pushed users to source elsewhere. The economies of scale that
come with these larger volumes will help expand existing supply markets and open up new regions.
Only the 5 CHP plants cited above demand 4.5 Mt/y of wood chips, three-fold the Brazilian exports in 2018.

66. EU-28 Energy Strategy and Targets
▪ On May 2014, The European Comission published the European Energy Security Strategy, which says:
• The EU imports 53% of the energy it consumes: crude oil (90%), gas (66%), solid fuels (42%), nuclear fuel (40%).
• Few Member States (6 – 8) have a dependency of natural gas from Russia lower than 1/3 of their needs.
• Member States plan to add 29 Million tonnes of oil equivalent (Mtoe) of renewable heating and 39 Mtoe of
renewable power between 2012 and 2020. These plans could be ‘front-loaded’ using national as well as
European Structural Investment Funds, in coordination with European Investment Bank and others.
• No objective target for H&C was appointed in the EU Energy Strategy document.
▪ On July 2015, the European Comission published the Communication on an EU strategy for Heating and Cooling:
• Heating and cooling (H&C) takes ~50% of the EU energy consumption overall (32% is transport and 18% is
electricity) and tends to stand so. 75% of this consumption comes from fossils (46% gas, 15% coal, 10% oil, 4%
others). In political terms, more critical to Western Europe than environmental concerns, are the threats to the
security of energy supply, due to the dependence on natural gas from Russia.
• The H&C contribution is key to achieve the EU objectives on decarbonisation, demand reduction,
security of supply and competitiveness. 90% of the renewable share of H&C comes from biomass.
• But no objective target for H&C or biomass was appointed in the H&C Strategy document.

67. EU-28 Energy Strategy and Targets
▪ On November 2016, the European Commission presented the “Clean Energy for all Europeans”, a new package of
measures with the goal of providing the stable legislative framework needed to facilitate the clean energy transition
– and thereby taking a significant step towards the creation of the Energy Union.
• Several parts of that package have been approved by the European Parliament in 2018.
• However, no objective target for H&C or biomass yet.
▪ As part of its “Clean Energy for all Europeans” package (2016), the European Commission proposed a recast of the
Renewable Energy Directive (2009) for the period 2021 – 2030 (RED II). A final compromise document was
agreed among EU Institutions on June 14, 2018.
• The new regulatory framework stipulates that a 32 % renewable energy target (overall) is to be achieved by
the EU in 2030, a substantial increase compared to the 27 % originally proposed by the European Commission.
• One of the directive’s most important and heavily debated figures was the Article 23, which requires member
states to increase their proportion of renewable heat by 1.3 percentage points each year up to 2030.
• During the consultation period, the renewable heating associations had asked for an annual increase of
2 percentage points of the renewable share in the heating sector.

68. Main Conclusions
▪ Heating is the big potential, bottleneck and political concern among all renewable energy applications in Europe.
▪ A major bottleneck is the engagement of citizens, in order to replace obsolete and inneficcient heating devices
(actual replacement is less than 1% a year). National policies for funding new residential devices and research for
cost reduction of devices are very expected, so to bring strong increase on biomass demand for heating systems.
▪ While the growth of biomass demand for residences relies on device replacement policies, the industrial demand
boosts in Europe, notably for electricity production. The industrial demand of biomass for electricity appoints to
very big potentials outside Europe as well, notably by the expected replacement of nuclear in Korea and Japan.
▪ Even though an impactful policy on the residential side hasn’t boosted demand yet, the demand for wood from the
industrial side has already appointed to the concern on the security of sustainable biomass supply. Tough weather
hampered forest harvestings, brought shortage of energy wood and pushed Europe to source elsewhere.
▪ The seek for lower costs has leaded new biomass-fired projects (notably combined heat and power - CHP) to move
from pellets to wood chips. In 2016, the total consumption of pellets for power in Europe was 8.3 Mt. Only 5 new
European CHP plants announced for commissioning in between 2016-2019 will demand 4.5 Mt/y of wood chips.
▪ As a leader in production and productivity, Brazil is becoming an important supplier of sustainable biomass for
Europe (Portugal, France, Sweden, Italy, UK). Its 2018 exports are projected to 1.6 Mt of wood chips (China 940 kt;
Japan 550 kt) and 230 kt of pellets (EU). In 2017, future pellet plants were announced in Brazil, moving its capacity
from 500 kt/y to 3.0 Mton/y. One of them (400 kt/y) is being invested by the British power producer Drax Group.

69. Non-coniferous wood chips
(including eucalyptus)
Total in 2016: $ 3.59 bn
China in 2016: $ 1.55 bn (43%)
Japan in 2016: $ 1.50 bn (42%)
Coniferous wood chips
(pinus)
Total in 2016: $ 844 m
Japan in 2016: $ 247 m (29%)
Turkey in 2016: $ 113 m (13%)

70. Carlos Gonzalez – Head of Operations
• Experience in logistics for agricultural commodities since the age of 18, on
sales of crops from the agricultural cooperatives at Brazilian midwest to
the ports of Santos and Paranaguá
• Experience in logistics in road, rail, fluvial and long course - the latter
including all customs clearance and international freight
• Worked for Ferronorte logistics demand studies and implementation of
rail terminals and warehouse (silos)
• 15 years of consulting for agricultural groups, advising in routes and
construction of 74 silos for grains price hedging
• Recent works focused on agribusiness, from the maintenance of
agricultural machinery and operation of farms (outsourcing of preparation,
planting, spraying and harvesting), and completing the value chain with
commodities’ brokerage and logistics
Jean Carlo Viterbo, MSc. – Head of Strategy
• Bachelor in Business Administration, FGV Brazil; Specialization in
Renewable Energy, UniKassel Germany; Master of Science in Naval Eng.,
USP Brazil; Specialization in Exponential Techs., Singularity University,
NASA Ames & Google, Silicon Valley USA
• Director at the Brazil India Chamber of Commerce
• Evaluation of the competitiveness of Brazilian-borne ship machinery
supply chain the for Oil & Gas Industry
• Engineering and institutional assessment to promote new export routes
for soya beans throughout Amazon waterways
• Strategy consultant in several wind energy and agroenergy in Brazil (pellets
and biodiesel).
• First Brazilian to defend thesis on the matter of Offshore Wind Energy
Team Brazil
Brazil is, by far, the world’s superpower in agro trade surplus. However, it shows a complexity of institutional and logistical challenges
so that choosing a reliable & competent operations & trade company, as like WBS bioenergy, is critical to deal with Brazil Agribusiness.

71. Global Market
Brazil Register CNPJ : 22.225.637/0001-19