A discussion on ethanol and its role in decarbonization efforts. Raízen's innovative approach to bagasse processing. Maximizing the use of sugarcane byproducts for low carbon ethanol production. Manufacturing process and scaling challenges of ethanol powered vehicles. The role of Brazil and Raízen in global decarbonization efforts.
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Quick takeaways
Raízen is pioneering the use of new technologies to produce low-carbon ethanol from sugar cane byproducts, with plans to invest billions in developing 20 plants to scale up their production.
Ethanol, particularly in Brazil, has the potential to be a solution for decarbonization in sectors like sustainable aviation fuel and petrochemicals, emphasizing the need for context-specific approaches to reducing carbon emissions.
Deep dives
The Potential of Second-Generation Ethanol
This podcast episode explores the potential of second-generation ethanol, focusing on the case of Ryzen, Brazil's leading producer of sugar and ethanol. Ryzen is pioneering the use of new technologies to produce ethanol from sugar cane byproducts with a low carbon footprint. The company plans to invest billions of dollars in developing 20 plants to scale up their production. The discussion highlights the challenges of testing and scaling up the technology, the need for partnerships and market creation, and the potential global impact of low-carbon ethanol in decarbonization efforts.
Ethanol as a Solution for Decarbonization
The episode discusses how ethanol, particularly in Brazil, can be a solution for decarbonization. The efficiency of sugar cane in converting solar energy into renewable carbon makes ethanol a viable option. Brazil has successfully adopted ethanol in its transportation sector, reducing carbon emissions significantly. The case emphasizes that each country's context and challenges are unique, and there is no one-size-fits-all solution for decarbonization. While electric vehicles (EVs) may dominate in some regions, ethanol can play a prominent role in sectors like sustainable aviation fuel and petrochemicals.
Ryzen's Ambitious Plans and Environmental Considerations
The podcast highlights the ambitious plans of Ryzen to build 20 plants and expand their market for low-carbon ethanol. Ryzen's success depends on proving the technology's commercial viability and establishing a market for their product. The case also addresses concerns about deforestation and emphasizes that Ryzen's operations are far from the Amazon, having a positive impact on reforestation and emissions reduction. The discussion underscores the potential for incumbent firms like Ryzen to drive the decarbonization transition and create new markets while addressing environmental challenges.
The bonus episode of the Climate Rising features an episode of HBR’s Cold Call podcast featuring a discussion on ethanol, a biofuel with a complex history and an uncertain future. Host Brian Kenny is joined by Professor Gunnar Trumbull and Paula Kovarsky from Raízen. As Brazil's top producer of sugar and ethanol and the world's premier ethanol trader, Raízen is at the forefront of biofuel innovation. The conversation delves into Raízen’s cutting-edge work in biofuels, the strategic choices behind advancing second-generation ethanol, and how these efforts contribute to global decarbonization initiatives.
Guest/Host:
Brian Kenny, Chief Marketing and Communications Officer, Harvard Business School and host of Cold Call.
Gunnar Trumbull, Phillip Caldwell Professor of Business Administration at Harvard Business School.
Paula Kovarsky, Vice President of Strategy & Sustainability at Raízen