Suzano’s energy matrix is primarily based on renewable sources, strongly emphasizing biomass. This biomass includes bark and rejects from the wood chipping process and black liquor (or bleach), a by-product generated during pulp separation, which serves as the company's primary fuel for energy generation. Additionally, some industrial units have already begun utilizing biological sludge from effluent treatment plants as fuel in biomass boilers, albeit on a small scale.

The company generates surplus energy at its plants in Aracruz (ES), Imperatriz (MA), Mucuri (BA), and Três Lagoas (MS), as well as at the newly completed Ribas do Rio Pardo (MS) plant. 

The new plant has an installed capacity of 384 megawatts, adding 105 megawatts to the energy surplus Suzano supplies to the National Interconnected System (SIN)—sufficient to meet the monthly consumption of approximately 1 million people. With this expansion, Suzano is strengthening its role in the generation of renewable energy within the Brazilian energy matrix, aligning with its Commitments to Renew Life, which include the goal of increasing renewable energy exports by 50% by 2030. This commitment underscores the company’s dedication to generating surplus clean energy for the SIN, while promoting sustainability and energy efficiency. 

Some consumer units, such as the Teixeira de Freitas Distribution Center (BA), the Inocência Terminal (MS), and the Ribas do Rio Pardo seedling nursery, have migrated to the Free Energy Market, enabling them to be supplied with renewable energy generated by Suzano itself. In addition to generation plants that operate on self-sufficient renewable energy, consumer units are provided internally, ensuring that projects and initiatives aligned with the company’s commitment to renewable energy benefit the entire organization.

Suzano adopts recurring practices (described below) that strengthen its commitment to sustainability and energy efficiency across the entire production and distribution chain to ensure effective management of this issue.

Allocation of own generation

Every month, the electricity consumption of Suzano Group’s consumer units in the Free Energy Market is offset by the surplus generation from Suzano’s exporting plants through the Allocation of Own Generation (AGP) regulatory mechanism. This process is managed via the internal systems of the Electricity Trading Chamber (CCEE) in Brazil. 

Sale of surplus energy

After meeting internal energy demands, surplus energy is sold on the Free Energy Market. Suzano utilizes Virtual Power Purchase Agreements (VPPAs) with varying terms, optimizing commercial opportunities while reinforcing its commitment to renewable energy trading and sustainability.

 

I-REC certification

Since 2022, the Três Lagoas (MS) unit has been certified under the International REC Standard (I-REC), enabling Suzano to issue and trade clean and renewable energy certificates. This initiative underscores the company’s dedication to fostering a sustainable energy matrix while creating value for its stakeholders. In 2024 alone, Suzano sold 264,000 certificates, generating a total revenue of BRL 245,000.

Brazil's energy sector

Suzano actively participates in the Brazilian energy sector and adheres to a comprehensive framework of local and federal regulations, including:

• National Energy Plan 2050: A long-term strategy developed by the Energy Research Company (EPE) under the guidance of the Ministry of Mines and Energy (MME);
• Ten-Year Energy Expansion Plan: A projection of the energy sector’s growth prospects, also prepared by EPE;
• Decree No. 5.163/2004: Establishes rules for commercialization and concessions in the electricity sector, regulated by the National Electric Energy Agency (Aneel);
• Procedures of the National Electric System Operator (ONS) and the CCEE: Guidelines for operating and selling energy, following Aneel resolutions.

In 2024, the Brazilian energy landscape faced challenges in supplying the National Interconnected System (SIN) through renewable generation sources, mainly due to the hourly intermittency of wind and solar energy. During the dry season, characterized by reduced rainfall, the sector experienced heightened volatility in energy prices and the dispatch of fossil fuel-based plants. As a major exporter of electricity, Suzano plays a pivotal role in the sector by reliably contributing renewable energy to the grid. The company also focuses on optimizing its energy consumption, reducing it whenever operational opportunities arise, reinforcing its commitment to sustainability and efficiency.

The company is also committed to annually reporting its plants' energy consumption data to the Energy Research Company (EPE), the body responsible for compiling the National Energy Balance (BEN). This reporting is crucial for enhancing transparency and reliability in the country’s energy data, providing a solid foundation for strategic planning and decision-making within the Brazilian energy sector. By fulfilling this obligation, Suzano reinforces its role as a responsible and collaborative stakeholder in advancing the nation’s energy goals. 

Risks of using biomass as the primary source of energy

Biomass, mainly black liquor derived from wood, plays a critical role in energy generation during the pulp production. The combustion of this byproduct produces steam, which is utilized both for electricity generation and as a key component of the industrial process. Any biomass supply disruption or steam generation system malfunctions can directly impact production efficiency and output.

Although biomass serves as Suzano's primary energy source, the complementary use of fossil fuels, such as natural gas and fuel oil, introduces significant challenges. These include market price volatility, reliance on external suppliers, and potential limitations in the availability of these inputs. Furthermore, using fossil fuels contributes to increased greenhouse gas (GHG) emissions, thereby diminishing the sustainability of the production process.

To mitigate these risks and strengthen its operational sustainability, Suzano adopts several practices:

• Forest Stewardship: The company maintains robust forest stewardship practices, ensuring a sustainable and resilient wood supply. These actions guarantee the continuous availability of biomass, even in the face of climatic or logistical challenges.
• Monitoring and Automation: Using advanced technologies, Suzano monitors and controls boilers and steam consumption, promoting greater energy efficiency, reducing losses, and optimizing resource use.
• Investment in Research and Development (R&D): The company continually invests in innovative solutions to enhance the use of biomass and reduce dependence on fossil fuels. These initiatives include developing technologies that improve operational efficiency and mitigate environmental impacts.

By integrating these practices into its management model, Suzano mitigates the risks associated with biomass use and reinforces its commitment to energy efficiency and sustainability. This approach ensures the continuity and quality of its production processes while contributing significantly to a cleaner and more renewable energy matrix.

Energy efficiency

Suzano employs a robust approach to energy efficiency in its operations, incorporating waste heat recovery systems and combined heat and power (CHP) cogeneration units. Our pulp manufacturing process features a closed-loop system for steam and thermal energy, where the heat generated at various process stages is reused. This approach optimizes energy consumption and minimizes waste, enhancing operational efficiency and sustainability.

Throughout the period, the company implemented several projects focused on energy efficiency and resource optimization, leveraging advanced technology and sustainable practices. Below are the key initiatives:

• Thor Turbines Project: Launched in 2020, this initiative optimizes steam allocation in turbogenerators to maximize electricity generation through machine learning. Developed by Suzano's in-house Digital team, the project continues to show high potential, with significant expectations for 2025.
• Dessuper: Operating in synergy with Thor Turbines, this project balances electricity generation and fossil fuel consumption. In 2024, it delivered substantial results, reducing the use of 2,000 tons of fuel oil and 15.7 million cubic meters of natural gas, equivalent to approximately 733,000 gigajoules of energy. Its application has been expanded to more units, underscoring its importance to the company's energy strategy.
• RPA: Originally designed to predict natural gas consumption and automate plant scheduling to avoid high penalties, this project stood out for its financial impact, eliminating million-dollar fines. Additionally, in 2024, the Aracruz (ES) unit transitioned to the free natural gas market, with other units in S√£o Paulo expected to follow by 2025.
• Methanol: This initiative optimizes methanol use in furnaces and boilers to reduce natural gas consumption and prevent spills. It has significantly enhanced industrial process efficiency, avoiding the consumption of 1.5 million cubic meters of natural gas, or 62,400 gigajoules of energy, aligning with Suzano's sustainability and cost reduction goals.
• Virtual Total Titratable Alkalinity (ATT) Sensor Project: The development of a virtual ATT sensor has advanced liquor concentration control, stabilizing the system and reducing dead load. This has led to decreased steam and electricity consumption across the plant.

Suzano's energy data

In 2024, Suzano enhanced the centralization and automation of energy information, fostering greater integration between technical and business areas. The company strengthened governance across its operations by establishing a single repository, mapping processes, and defining clear responsibilities. This advancement supports simplification and continuous improvement, aligning with Suzano’s corporate principles and reinforcing its commitment to operational excellence and sustainability.

This approach enables Suzano to further expand its contribution to a cleaner, more sustainable, and efficient energy matrix, benefiting not only the company but also Brazilian society as a whole.