SOUND CULTURE, INTEGRATED ECOSYSTEM AND ADVANCED TECHNOLOGIES
Innovations focused on renewable energy is Raízen’s bet for the coming years.
Produced by Jassen Pintado
Written by Flávia Brancato
Leonardo Pontes, Vice-President of Downstream, Raízen
The 10th anniversary of Raízen is a landmark in a successful path and strengthens the company’s importance in the energy transition scenario. As from the development of its vertically integrated renewable and downstream energy ecosystems, the company has been able to triple its EBITDA and pave avenues for growth that will certainly remain stable in the next decade.
The fruit of a strategic partnership between Shell and Cosan, giants in the energy, fuel and logistics segments, and creating the largest integrated and vertical player in the world, the company is recognized in the market as Green Champion and a source of great pride for the Vice-President of Downstream at Raízen, Leonardo
Pontes. “Our energy is essential to mobilize people and leverage business, and our bets are already visible and are producing excellent results, delivering a low carbon economy to society”, celebrates the executive.
BUSINESS UNITS
With over 40,000 employees, Raízen operates 35 sugar, ethanol and bioenergy production units in the states of São Paulo, Goiás, Minas Gerais and Mato Grosso do Sul, which have an installed capacity to crush around 105 million tons of sugarcane per year, in addition to a secondgeneration ethanol plant (E2G) and a biogas plant. The company also has 3.2 million acres of agricultural areas cultivated with state-of-theart technology and 99% mechanized
Our energy is essential to mobilize people and leverage business, and our bets are already visible and are producing excellent results
-
Leonardo Pontes, Vice-President of Downstream, Raízen
“Sugar cane has a huge potential for converting solar energy into affordable biomass”
- Leonardo Pontes, Vice-President of Downstream, Raízen
harvesting, and installed capacity of around 1.3GW for energy generation. According to Pontes, 2.1 TWh of electricity was produced from sugarcane biomass in the last harvest.
At the other end of its operations, Raízen has a reseller network of more than 7,000 Shell branded service stations in Brazil and Argentina. And, through the NÓS Group (JV with FEMSA Comercio), it operates in retail
with more than 1,000 Shell Select convenience stores, in addition to the OXXO markets. In the B2B and retail segments, in the crop year 2019-20, approximately 7.1 billion gallons of fuel were sold, with operations in all regions of Brazil through 67 airport supply bases and 67 fuel distribution terminals. In Argentina, where the company has operated under the Shell brand since 2018, 1.6 billion
The company has 3.2 million acres of agricultural areas
gallons of fuel were sold in the same period, with a network of around 730 Shell stations, a refinery, a lubricant plant, four land terminals and two supply bases in airports.
OPERATIONAL EFFICIENCY AND INVESTMENTS
The advantages of climate, land availability and differentiated export logistics are some of the strengths that provide an efficient production
and logistical process. Deemed to be a leader in the production of biofuels and bioelectricity from sugarcane, Raízen continues investing to expand its portfolio in renewable sources, with the implementation of new technologies, such as cellulosic ethanol (second generation or E2G), in addition to projects for the production of biogas, biomass and solar energy generation.
We will continue to invest in solutions that contribute to the global energy transition agenda on a gradual and sustainable basis
- Leonardo Pontes, Vice-President of Downstream, Raízen
According to Pontes, Raízen is the only company able to produce E2G ethanol on a commercial scale in the world. “Sugar cane has a huge potential for converting solar energy into affordable biomass. The importance of this milestone is one of the main growth verticals for the next decade, since currently this is the biofuel with the lowest carbon footprint in the world (which serves as an integral substitute for gasoline or, when mixed with gasoline, improves fuel quality as it has a smaller carbon footprint). In addition, E2G represents an opportunity for us to increase our productivity by up to 50% over the same cultivated area”.
Actively acting in the fight against climate change by promoting decarbonization through a robust portfolio of renewable energies and
reducing emissions from industrial processes, Raízen’s production plants are no longer power plants and became bioenergy parks. Furthermore, with the circular economy as one of the company’s pillars, 23 of its units are self-sufficient in the cogeneration of electricity from biomass burning, and 13 of them export surplus bioelectricity to the network. Pontes also evaluates the company’s performance and prospects. “Raízen is attentive to acting in an innovative way in global trends, such as the growing demand for clean energy, the accelerating digital revolution, new habits and perspectives for distributed energy generation. Thus, we will continue to invest in solutions that contribute to the global energy transition agenda on a gradual and sustainable basis.”
EVOLUTION AND RECOGNITION
As evolution highlights, the VicePresident shows the privilege of being part of a path of growth and success and he mentions the development of the retail partnership with the FEMSA group - which aims at exploring the nearby retail business in Brazil, in addition to the creation of Shell Box, a payment and loyalty application
that has exponentially increased the company’s interaction with end consumers in Brazil.
“I have been in the group’s executive board of officers for seven years; I am responsible for the Downstream business, which encompasses all logistical operations, retail and B2B’s sales channels. In this period, I experienced phases of economic
The alliance with Shell has proven its importance as a revenue avenue
Raízen is the only company able to produce E2G ethanol on a commercial scale in the world
process phases and due to the intense work carried out in all group’s units, Raízen has a series of recognitions including 10 certifications that strength the quality in production, full compliance with several international requirements, and concern about the community and sustainable growth.
Always valuing quality and operational efficiency at all production
Among the recognitions, noteworthy is Bonsucro, international social and environmental certification of sugarcane and all its derivatives; the expansion and recession. However, with our entrepreneurial culture, capital discipline, unique assets that comprise our team, logistics, brand and scale, we continue to increase our market share and to improve our return on investment. According to many investors, today we are the benchmark in the Brazilian market”, Pontes points out.
In 2020, Raízen structured a governance of donations and investments to ensure actions to combat and prevent the coronavirus.
The company donated around 290,500 gallons of 70% alcohol to 98 hospitals, covering over 100 cities across the country
- Leonardo Pontes, Vice-President of Downstream, Raízen
ISCC, which guarantees compliance with the sustainability parameters of production in the European Union under the Renewable Fuels Directives; the EPA, registration of ethanol with the American environmental agency, and the CARB, the certification that guarantees access to the Californian ethanol market.
COMMITMENTS AND SOCIAL RESPONSIBILITY
To continue its work to combat climate change, including to reduce emissions from processes and to increase the offer of renewable products for society, in this crop year 2020-21, Raízen publicly assumed commitments to be achieved by 2030 in line to the Sustainable Development Goals (SDGs) established by the United Nations (UN). Among them:
reducing ethanol’s carbon footprint by 10%; reducing water collection by 10%; ensuring a robust traceability system for 100% of the volume of crushed cane; and to ensuring internationally recognized sustainability programs for sugarcane sources.
As we believe that sustainable development should consider the balance of environmental, economic and social factors in business management, social responsibility is at the base of Raízen’s strategic pillars, permeating all stages of the company’s production and business processes. The executive also highlights the achievements during the pandemic. “In 2020, Raízen structured a governance of donations and investments to ensure actions to combat and prevent the coronavirus.
The company donated around 290,500 gallons of 70% alcohol to 98 hospitals, covering over 100 cities across the country”.
Another outstanding action takes place through the Raízen Foundation, the company’s social and educational branch present in seven cities in the states of São Paulo and Goiás. Every day, around 1,400 socially vulnerable children and teenagers are assisted. “Boosting an entire network of solidarity, Raízen continues with the incentive and investment in internal volunteer programs that impact the surrounding communities”, concludes Pontes.
INDUSTRY: Energy CONTACT: 0810 999 7435 www.raizen.com.br
