Arauco Sucuriu

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IFC is considering a loan to support Celulosa Arauco y Constitución (Arauco) for the construction and operation of the Sucuriú Project, an industrial pulp plant in Inocência, Mato Grosso do Sul, Brazil. The facility will have an annual production capacity of 3.5 million tons of short-fiber pulp, supported by 400,000 hectares of eucalyptus plantations, with operations expected to begin in late 2027. The project includes a 91 km transmission line connecting the plant to the Ilha Solteira substation and a 47 km railway link to the Rumo Logística network, facilitating pulp distribution. The plant will incorporate high-efficiency processing units, including a recovery boiler, lime kilns, an evaporation plant, and a crystallization plant. Thegasification system will feature two 92 MW units, while a biomass boiler with a 200 t/h capacity will contribute to energy self-sufficiency. The facility is expected to generate 400 MW of clean energy, with 220 MW available for sale through Brazil’s National Interconnected System (SIN). With the support of specialized external consultants, the project has developed an Environmental & Social Impact Assessment (ESIA) titled “Estudo De Impacto Ambiental (EIA/RIMA) - Fábrica de Celulose Branqueada em Inocência – MS” dated “October 2023” to address E&S risks, impacts and mitigations for the project. The ESIA was submitted for approval to the Mato Grosso do Sul Environmental Institute (IMASUL). The ESIA should notbe taken as an indication that IFC has completed its review of the potential investment. Upon completion of the E&S Due Diligence process, an Environmental and Social Review Summary (ESRS) will be prepared and published on this website.