Forest-Based Power Plants In Brazil: Empirical Evidence For A Circular Economy

The Circular Economy (CE) is a sustainable production model that replaces product disposal with reduction, reuse, recycling, and recovery, emphasizing environmental and socioeconomic benefits aligned with sustainable development. CE principles can be adopted across various sectors, including the bioeconomy. This study explores the structure of Brazilian forest bioelectricity through the CE perspective, aiming to assess the degree of circularity within the national forest-based electricity generation network. The analysis focused on 125 forest biomass thermoelectric plants operating between 2000 and 2020, using data from the Generation Information System of the National Electric Energy Agency. Sectoral evolution was examined through the growth of these plants and their installed capacity. Circularity was assessed by linking information about the production processes of each plant to CE conceptual approaches, allowing the identification of circular practices and gaps. Results indicated consistent expansion in the sector, with an average annual increase of 12.78% in the number of units and 11.27% in generation capacity. Among the plants analyzed, 78% (99 companies) already apply CE strategies, especially those utilizing forest residues (60 companies) and black liquor (17 companies). Practices such as “Closed Loop,” “Spiral Economy,” and “Reverse Logistics” were the most adopted. Many of these companies also align with international environmental goals, including the Paris Agreement and UN Climate Committee recommendations. However, 22% of the plants mainly those using blast furnace gas (5 companies) and charcoal (4 companies) do not provide public information on CE strategies. Although the sector shows strong potential, the findings highlight the need for more robust public policies and private investments to advance CE implementation.