Ethanol pipeline in MT is the sector’s bet to take all production to the Southeast | RDNEWS

The arrival of an ethanol pipeline in Mato Grosso is a bet by the bioenergy sector to improve logistics and transport production in the coming years. Currently, the modal works in some cities in São Paulo and a study is being carried out so that the pipeline system can reach Goiás. As a result, the bioenergy sector in Mato Grosso is already debating expansion to Mato Grosso, which this year surpassed Goiás and reached second place in the national ranking of ethanol production.

This logistics system is based on the creation of pipeline corridors that integrate in a multimodal way with the distribution system already existing in these regions. Ethanol is captured in terminals and transported through pipelines that connect the country’s main producing regions to major fuel consumption centers, such as the cities of Campinas, São Paulo and Rio de Janeiro.

“We will soon hold a meeting with the Minister of Development, Industry, Commerce and Services, Geraldo Alckmin, to discuss this project. The project is currently being studied to be expanded to Senador Canedo (GO) and we want to make this connection with Mato Grosso”, explains Silvio Rangel, president of Indústrias de Bioenergia de Mato Grosso (Bioind MT).

Currently, the system passes through Uberaba (MG), Ribeirão Preto (SP), Paulínia (SP), Barueri (SP), Guararema (SP), São Caetano do Sul (SP) and São José dos Campos. It is then taken to the port of Ilha D’Água, in Rio de Janeiro, where it is exported.

According to information from Logum, the possibility of taking the pipelines to the port of Santos is still being studied, as was in the initial project, to facilitate maritime loading. Logum also intends to expand its ethanol capture network in the Midwest, to take advantage of the growing production of biofuel made from corn in the region.

However, these are still ideas that are being analyzed. The first step is to carry out feasibility studies. According to the company’s communication, the volume of ethanol produced by Mato Grosso attracts the attention of investors and this could be a positive point for this expansion project to become viable.

For the bioenergy sector, the idea is for the biofuel to reach the distribution center in Senador Canedo (GO), passing through producing regions in Goiás, São Paulo and possibly reaching Mato Grosso.

“The ethanol pipeline would have the capacity to take almost all of our production to be consumed in the Southeast region. Today it arrives in Paulínia and from there it is taken to the large centers of São Paulo and Rio de Janeiro. It would be one of the solutions to our logistical bottlenecks in Mato Grosso. We need to serve the Northeast and North. The arrival of the train in Lucas do Rio Verde is already a potential. The exit to the North arch is also via waterway, as well as the FICO connection to reach the Northeast. These are thoughtful solutions that are being designed to take our ethanol throughout Brazil”, says Silvio.

“The ethanol pipeline would have the capacity to take almost all of our production to be consumed in the Southeast region. Today it arrives in Paulínia and from there it is taken to the large centers of São Paulo and Rio de Janeiro”

Explains the president of Bioind, Silvio Rangel

For this project to be possible, it is first necessary to arrive in Goiás, where strategic planning is being carried out by Logum. The company can then analyze the possibility of extending it to Mato Grosso.

ethanol pipeline

This system presents environmental and economic benefits, as in addition to reducing logistical costs throughout the process, it offers a new transport alternative that provides a significant reduction in pollutant emissions, and contributes to reducing the impact of road traffic in large urban centers.

In 2022, 3.4 million cubic meters passed through the pipelines. By 2023, there were around 4 million cubic meters of ethanol, a period in which the pipelines handled around 70% of São Paulo’s biofuel market.

According to the company, it is estimated that transporting ethanol by pipeline may cost around 10% less compared to road transport. From an environmental point of view, according to a methodology approved in the GHG Protocol, a calculation tool for estimating greenhouse gas (GHG) emissions, pipeline transport has a carbon footprint 80 times smaller than the use of trucks .

By 2030, the company intends to replace 1.2 million truck trips with pipelines, generating a reduction in emissions of 1.4 million tons of carbon.

Second largest ethanol producer

Mato Grosso reached second place in the ranking of ethanol production in Brazil for the first time. According to data released by the Bioenergy Industries of Mato Grosso (Bioind MT) and the Mato-Grossense Institute of Agricultural Economics (Imea) this Thursday morning (25), the state had a record production of 5.72 billion liters in 2023/24 harvest, an increase of 32% over the previous period.

Until last year, in the 22/23 harvest, Mato Grosso was in third place in the national ranking, behind São Paulo and Goiás. This year, the state was behind only São Paulo. The 32% increase compared to the previous period, when 4.34 billion liters were produced, is the highest percentage of annual growth in ethanol production ever recorded in the State.