Located in Vargem Bonita, Brazil, the Celulose Irani Project demonstrates how one paper manufacturer is finding economic value in what was once considered waste. The facility uses byproduct biomass from their paper production process to generate sustainable energy for their facility. Irani thus provides a model for biomass projects that reduce both waste and greenhouse gas emissions (GHGs), promoting sustainable development through the Clean Development Mechanism (CDM).

Biomass is a renewable energy source which can be cleanly burned to generate electricity. Brazil has strong potential to encourage biomass energy, given that biomass producing sectors such as agriculture and timber constitute a significant portion of the economy. Yet while there is a great deal of potential in the country, less than 4% of total energy production in 2003 was derived from biomass.

Celulose Irani is a Brazilian pulp and paper manufacturing company which produces a diverse range of products. From 2000-2003, the company grew significantly, increasing production capacity 77% from 83,000 to 147,000 tons of paper/yr.2 They also anticipated future growth requiring an increase in energy use from 125,353 MWh/yr from 2004-2007 to almost 145,000 MWh/yr from 2008-2024.

Irani has traditionally relied on smallscale on-site biomass and hydroelectric facilities for much of their power. This is logical, since the byproducts from their processes can be used to fuel a biomass plant. However, they have also historically drawn a substantial amount (44%) of energy from the central grid. While Brazil generally relies on fossil-fueled energy for only about 9% of total production, the majority of this is generated in the South-South East portion of the national grid where the Celulose Irani facility is located.

Despite their growth, Irani had no plans to increase its installed power generation capacity. This would have led to increased reliance on the grid, and would have caused significant increases in GHG emissions. Therefore, the construction of additional biomass facilities was vital to ensuring GHG reductions and sustainable energy use for Irani’s future.

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