The demand for biomass in Brazil is growing rapidly, and in some regions it is outpacing available supply. While the country has significant biomass resources, procurement is becoming increasingly difficult due to supply chain constraints, regulatory barriers, and logistical challenges. Particularly as certain types of biomass are limited to specific regions and feedstocks vary in availability.
Our client asked us to develop a strategic approach for biomass procurement to ensure cost-effective and reliable sourcing. Focusing on supply and demand analysis, pricing and procurement before offering strategic alternatives.
CZ Approach
- Assessing biomass supply and demand within the selected radius, identifying the largest consumers and producers, and comparing the two to determine potential gaps.
- Rationale for biomass pricing considering the main drivers of supply and demand.
- An overview of the main factors influencing the price such as the climate and oil price.
- Recommending alternative strategies for the client, including identifying potential suppliers and exploring other energy options beyond biomass.
CZ Solution:
Delivered a comprehensive report of the supply and demand of biomass in the selected radius to the client. Enabling them to understand key market dynamics, including the impact of regional supply constraints, climate conditions, and oil prices. From the analysis, five strategic alternatives were put to the client for biomass procurement, including alternative options such as the use of electric boilers.
Outlook
Within the analysed radius in Brazil, the future biomass demand is expected to surpass the supply. As a result, consumers in the region will need to explore alternative options or produce their own biomass supply. This is also observed more widely across Brazil as biomass is becoming increasingly popular.
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