Seeking Cheaper Biomass, Mato Grosso Mills Resort to Deforestation Wood
In Mato Grosso, Brazil, corn ethanol plants are facing scrutiny for allegedly using wood from deforested areas to secure cheaper biomass. The difficulty in finding competitive biomass prices has led to accusations of sourcing wood from illegal deforestation. The state prosecutor's office has initiated an investigation, requiring involved companies to sign a Conduct Adjustment Term or face civil action. This situation highlights a contentious debate between environmental protection and energy costs, especially after state regulations were temporarily relaxed.
In Mato Grosso, Brazil's leading corn ethanol producing state, the challenge of finding competitively priced biomass to fuel grain ethanol plants' boilers has sparked controversy. Concerns regarding the origin of this input quickly reached the state public prosecutor's office. According to a report by The AgriBiz website, the agency initiated a procedure in November 2025 to investigate the increased use of biomass derived from deforestation. Prosecutor Ana Luíza Peterlini stated that the companies involved now face a choice: either sign a Conduct Adjustment Term (TAC) or confront a public civil action.
Sources interviewed for the report indicated that the discussion involves legal disagreements. The article highlights that despite Brazil's Forest Code prohibiting the use of native wood as biomass since 2012 (even if the deforestation was legal), the Mato Grosso State Environmental Secretariat authorized its use in 2022. Guilherme Elias, founder of Enebra, told The AgriBiz: “Mato Grosso state’s solution is environmentally sound, correcting the problem of legal burnings that existed and were a serious public health issue.”
However, the Mato Grosso Reforestation Association (Arefloresta) points out that the relaxation of state regulations and the expansion of corn ethanol have led to an increase in the use of wood from deforestation in recent years. Citing data from IBGE, the entity reports that between 2023...