Mato Grosso became the second largest ethanol producer in the country, after surpassing Goiás. The 18 plants reached a record production of 5.72 billion liters in the last harvest (2023/2024) – the largest in the historical series since the 2010/ 2011. The number is 32% compared to the previous period – 2022/2023 harvest -, which reached production of 4.34 billion liters.
The State, which is only behind São Paulo in the generation of biofuels, remains in the lead in the production of corn ethanol.
Of the industries based in the State, nine produce exclusively corn ethanol, five through sugar cane and four are flex, with both raw materials.
The Secretary of State for Economic Development, César Miranda, pointed out that the biofuels sector has been a flagship in Mato Grosso’s second growth cycle, by verticalizing agricultural production, industrializing primary products such as corn, in the production of ethanol.
“Mato Grosso plays a crucial role in Brazil’s energy transition to cleaner and more sustainable sources. Tax incentives for the biofuels sector are an essential tool to ensure the continued and sustainable growth of our ethanol industries. They not only reduce the cost of production, making ethanol more competitive on the market, but also encourage investments in technology and infrastructure. By supporting the biofuels sector, we are promoting the creation of jobs, the diversification of our energy matrix and the reduction of greenhouse gas emissions and demonstrates the Mato Grosso State Government’s commitment to economic development that goes hand in hand with environmental responsibility”, highlighted César Miranda.
Currently, the Mato Grosso Industrial and Commercial Development Program (Prodeic) grants tax benefits to stimulate the production and consumption of biofuel and its by-products. The concession is 75% for industries that produce over 290 m³/day and 85% for those that produce up to 290 m³/day, whether in operations inside or outside the State. Furthermore, there is a tax incentive for the manufacture of DDG, a by-product of corn ethanol, for animal nutrition based on vegetable protein.
“There is a partnership with the State Government to achieve this result. There is a specific program for the issue of biofuels and this is crucial for companies to make their investments and make the sector grow. This is very important for the State because it produces a renewable and environmentally friendly biofuel, in addition to generating employment and income in several places here in the state, contributing to the local economy”, said the president of Indústrias de Bioenergia de Mato Grosso (BioInd) and the Federation of Industries of Mato Grosso (Fiemt), Sílvio Rangel, this Thursday (25).
For the next 2024/2025 harvest, the Mato Grosso Institute of Agricultural Economics (Imea) expects total ethanol production to reach 6.30 billion liters, an increase of 10.03% compared to this harvest. . Of this volume, 5.207 billion liters must come from corn and 1.088 billion from sugarcane.
“The corn ethanol production capacity in Mato Grosso should reach 9 billion liters in the 2032/2033 harvest, and we could even surpass São Paulo in ethanol production. Currently, Mato Grosso already accounts for 80% of the national production of corn ethanol and the tendency is to grow even more”, pointed out Imea’s Regional Development manager, Vanessa Gash.
The forecast is that there will be an increase in grain production through the conversion of pasture areas into crops, that is, cereal production should increase without having to deforest any area.
Job generation
For every job created in the biofuel industry in Mato Grosso, another 13 are created in the state economy, pointed out the manager of the Fiemt System Industry Observatory, Pedro Máximo.
The number of indirect jobs generated could reach 104 thousand in the State, taking into account the calculation.
“We have one of the lowest unemployment rates in Brazil, 3.9%, which is to be celebrated and is also a concern because the agroindustry needs to find labor, it is growing and needs to find workers. When we go to Nortão, which is an axis with the highest incidence of an agro-industrial state, it is where we have the lowest unemployment rate. In Sinop, Nova Mutum, Lucas do Rio Verde it is 2.8%. It is a very big challenge and one of the solutions that plants are finding is to be less labor intensive and more technological, solving this equation that is so complicated to solve”, explained Pedro Máximo.
Of the 15.5 thousand industries in Mato Grosso, 19% are agro-industries and they account for 43% of the total industrial employees. Together, the 18 biofuel industries have 8 thousand employees, 83% of whom are male and 52.6% have secondary education.
Around R$608.4 million were collected in ICMS for the State in 2023 and corresponds to R$19.6 billion in the gross value of industrial production, which means 16% of Mato Grosso’s total.
Tags: increases ethanol production
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