Thirty two percent of all energy produced in Brazil is from biomass. Of this, firewood and charcoal account for 11.4% of the total. Brazil produced about ten million tons of charcoal, of which 84% was used in the steel industry for the production of iron, 8% for residential use and 8% for other activities. These figures place Brazil as the largest producer of charcoal in the world. However the main and perhaps the most important problems associated with charcoal production in Brazil are in fact related to the supply of raw material. Numbers of Forestry Mining Association (AMS) show that in 2008, of all the charcoal produced in the country, 47% of the raw material used originated from native forests, obviously a matter of some concern.
Although the current situation in the supply of raw material is exrtremely worrying, it can be easily resolved. According to the Brazilian Association of Planted Forests (ABRAF), there are about six million hectares of planted forests in Brazil. Over four million hectares are planted with eucalyptus plantations, which take up less than 1% of arable land in Brazil.
Consequently there remains an enormous growth potential in managed forestry plantations. Brazil has abundant water and solar energy combined with very fertile soil conditions. So ideal conditions prevail for the growth of many tree species, which puts Brazilian forestry investing companies in an enviable position.
To illustrate thisfact, the production of wood per hectare per year in Brazil can often exceed 50 m3 in many parts of the country (with genetic advances providing opportunity for even higher growth rates still). Yet in Finland for example, growth is no more than 5 m3 per hectare per year, yet Finland has achieved a high level of economic development with much of its income coming from the forestry investment community.
Studies carried out by academic bodies in the Brazilian forest show that, to meet the demand of raw materials forests over the next 10 years, Brazil will need over 7.5 million hectares of additional forestry, or about 13.5 million hectares of forestry in total will be required by 2020. Large scale biomass production will be essential, through increased forestry plantation investments.
A further challenge is related to the technologies for converting biomass into energy. Charcoal is produced today, for the most extent, the same way as ever. The technology can and will be improved. So the need to provide more abundant and efficient, sustainable charcoal is there for all to see.
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January 7th, 2010 at 7:38 pm
This is fascinating information with very solid numbers. I wonder how the Brazilian authorities plan to deal with this issue considering they’re trying to protect native forests on one hand, yet not doing much about energy efficiency of wood and charcoal.
Kim
January 14th, 2010 at 3:35 pm
Hi Kim,
Thanks for your post on forestry invest. I think its fair to say the Brazilian authorities are making some really good progress into reducing their rate of deforestation much to their credit….the fact that the rate of natural forest depletion has hit all time lows is a tribute to the efforts that have been made. Brazil has actually lowered deforestation rates by nearly 65 percent since 2005. Indeede, Brazil really is now recognised as one of the most progressive countries in the world in making commitments to reduce greenhouse gas emissions within the United Nations climate negotiations. Brazil has stated that it would cut deforestation to 20% of its historic level by 2020. I’d be very interested to hear your thoughts on Brazils efforts with regard to energy efficiency of wood and charcoal. I believe the timber harvested from the eucalyptus plantations by Greenwood Management is transported directly to their own kilns in situ, where the harvest is processed into charcoal ( is this process called pyrolysis?). Anyhow thanks again. Best wishes
John Barnes