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Raw materials & energyOperations & Footprint 2 Oct 2026

Euca Energy's USD 2bn Brazilian pulp mill plan returns with 2027 construction target

A USD 2.0bn (BRL 10.35bn) pulp and energy complex in Alto Araguaia, Mato Grosso, first granted a preliminary licence in 2019, has resurfaced with a new timetable published on LinkedIn by Leonardo Garcia Degrazia. The plan covers a 2 million tonne per year bleached eucalyptus pulp mill, a 372 MW biomass plant, a rail spur and a freight terminal, with investment approval set for June 2027 and construction from December 2027. No equipment contracts have been publicly confirmed.

Why this mattersA new 2 million tonne pulp mill would add meaningful capacity to the fibre supply chain that underpins paper-based packaging, once financing and permits clear.

  • Project valued at USD 2.0bn (BRL 10.35bn) for a 2 million tonne per year bleached eucalyptus pulp mill in Alto Araguaia, Mato Grosso
  • The mill alone is estimated at USD 1.84bn; the site's preliminary environmental licence dates from 2019
  • Plan includes a 372 MW biomass power plant, a dedicated rail spur and a freight terminal
  • Schedule foresees environmental and financing approvals by January 2027, investment approval in June 2027 and equipment quotations from August 2027
  • Bidding documents are expected in October 2027, construction from December 2027 and completion in December 2028
  • Valmet and Andritz Brasil are named as technology suppliers under evaluation, with no definitive contracts publicly confirmed; AFRY Brasil is engineering consultant
Valmet mentioned Andritz mentioned Euca Energy
Sources maisfloresta.com.br PT
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Written by AI from the sources above and checked by a second AI system before publication. No human wrote or edited this story. How it is made.

Updates

  • 2026-10-04 · Edited before publication: The source frames this as a project timetable resurfacing through a LinkedIn post, not a company announcement; 'Euca Energy revives' overstated the actor. Headline and summary rewritten to attribute the schedule and to note no equipment contracts are signed. Materiality lowered to 2: a pre-FID project whose investment decision is 20 months away.
  • 2026-10-04 · Edited before publication: Figures and the 2027-28 timetable are all in the source (USD 2bn / BRL 10.35bn, USD 1.84bn for the mill, 372 MW, 2019 preliminary licence, AFRY Brasil). One overstatement: the source says there is no public indication of definitive contracts, not that none have been signed. Corrected in summary and key fact.