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Luiz Augusto Resende Nascimento

Director of Agroindustrial Operations at Cerradinho Bioenergy

OpAA77

Analysis of advances and opportunities in the sugar-energy sector

The Brazilian sugar-energy sector plays a crucial role in the national economy, being one of the largest producers and exporters of sugar and ethanol in the world.

Over the last few decades, this industry has undergone several developments, driven by socioeconomic, technological and environmental factors.

The sector faced a number of challenges that shaped its advancement. Among them are: the fluctuation of international prices, the search for sustainability, the renovation and expansion of sugarcane fields. However, the sugar-energy sector has undergone notable developments in the industrial production sector, which have contributed to boosting its competitiveness and efficiency. I quote the main ones, according to my point of view.

• Technology and digitization: the sugar-energy industry has increasingly adopted advanced technologies, such as the Internet of Things, automation, artificial intelligence and data analysis. All of them allow real-time monitoring of industrial processes, optimizing production, reducing waste and facilitating decision-making based on accurate data.

• Precision agriculture: a practice that uses technologies to monitor and manage plantations individually, taking into account the specific characteristics of each area of the sugarcane field. Some examples: mapping and remote sensing (use of drones, satellites and sensors), real-time monitoring, application of variable inputs, agricultural fleet management, data-based decision-making, integration and connectivity, among others. This results in a more efficient use of agricultural inputs, such as fertilizers and pesticides, reducing production costs and environmental impacts, in addition to increasing productivity (better management).

• Biotechnology and genetic improvement: Biotechnology research has been fundamental for the development of more productive and disease-resistant sugarcane varieties. Genetic improvement, on the other hand, allows obtaining plants with specific desired characteristics, such as those with higher sucrose content or greater resistance to pests and diseases, with better adaptation to the different microclimates existing in our country.

• Sustainability and certifications: the adoption of sustainable practices is another fundamental aspect for the future of the sector. Society is increasingly concerned about the planet and consumers and investors are looking for products manufactured in a responsible and sustainable way. In this context, many mills have sought certifications that attest to their best practices, such as Bonsucro and ISO 14001. In addition, the production of advanced ethanol, the cogeneration of energy from sugarcane bagasse and, more recently, the production of biogas using vinasse, are examples of sustainable practices adopted by the sector. Another important point is the proper management of natural resources, with the expansion of sugarcane plantations being carried out respecting environmental standards, guaranteeing the protection of forests and, consequently, of water resources. The implementation of soil conservation practices and the efficient use of water are measures that also guarantee the sustainability of production;

• Product diversification: the industry must continue to diversify the supply of products beyond sugar and ethanol. The latter has been an important alternative to the use of fossil fuels, contributing to the reduction of greenhouse gas emissions and the mitigation of climate change. Therefore, continuing to invest in new opportunities, such as bioplastics, biochemicals and other value-added products, has proven to be an important strategy to expand sources of revenue and reduce dependence on commodity markets and regulated markets, such as fuel in Brazil. Brazil. In this same context, I also highlight the advance of corn ethanol which, in addition to having several synergies with the current production system, also allows entry into other markets such as animal and human nutrition.

• Logistics and energy efficiency: the search for more efficiency in logistics has been a constant concern. Investments in improvements in transport and storage infrastructure have a direct impact on costs and the competitiveness of the sector. In addition, the adoption of energy efficiency practices at the plants contributes to the reduction of operating costs and to the sustainability of the sector. Self-sufficient energy plants can obtain competitive advantages and contribute to the diversification of the country's energy matrix.

• Circular economy: the circular economy concept has gained ground in the sugar-energy industry . The use of waste and by-products from the production process as raw material for other industries or for energy production reinforces the vision of a more sustainable system with less waste. In addition, water reuse, reverse logistics and resource sharing between plants are other applications that reinforce the fundamental principles of the circular economy.

Investments in Research and Development and in people: the continuous search for innovation and investment in research and development are key factors for maintaining the sector's competitiveness. The industry has strived to be at the forefront of the most advanced technologies and practices, ensuring its relevance on the global stage. Finally, education and training of qualified professionals are important to ensure the continued evolution of the sector. Investing in qualification and training programs for employees is an assertive way to increase the efficiency and productivity of the plants, in addition to preparing the industry for future challenges and opportunities.

With a strategic approach and a long-term vision, the Brazilian sugar-energy sector can remain one of the main global market players, contributing to the country's economic development, job creation and reduction of environmental impact. It is up to companies, the government and all actors involved in the production chain to work together to face the challenges and take advantage of the opportunities that present themselves, towards a sustainable and prosperous future for the Brazilian sugar-energy sector.