Biomass Power Plant in Brazil: a financial analysis using FINPLAN

This study highlights the feasibility of establishing a Biomass Power Plant in Brazil using sugarcane bagasse. Positioned as a strategic initiative for a more sustainable energy matrix, the proposal aims to increase the country's electricity generation from sugarcane bagasse, considering that Brazil has a generation potential approximately three times higher than the production recorded in 2022 (4.7%).

Analysing three scenarios collectively, the study concludes that the proposed Biomass Power Plant implementation is financially viable when the UC exceeds 50%, EC surpasses 0.11 BRL/kWh and AFC remains below 13 million USD. These parameters lead to dividends exceeding 180 million USD, affirming the economic viability of the project.

However, for a successful transition, the Brazilian Government must institute credit lines with more accessible interest rates, recognizing the critical role this form of energy will play against the growing adoption of intermittent renewable sources. Beyond contributing to sustainability, the construction of power plants utilizing sugarcane bagasse biomass holds potential for reinforcing the reliability of the Brazilian electrical system.