According to the Brazilian Ministry of Mines and Energy, 75% of electricity generation comes from renewable sources, but the heavy reliance on hydroelectric generation could compromise the country's energy security. Undoubtedly, diversifying the energy matrix becomes even more necessary given the variations in rainfall patterns in the country, resulting from climate change. Solutions to make this a reality exist, and we now have additional motivation to achieve them. To contribute to the Paris Agreement, Brazil voluntarily committed to increasing the use of renewable energy sources (wind, solar, biomass, and biofuels) in its energy matrix from 28% to 33%, in addition to hydropower.
GE is helping the country succeed in this challenge, already contributing one-third of all power generation capacity in Brazil. We are committed to developing technologies to help diversify the energy matrix, prioritizing renewable sources, as well as improving the energy efficiency of the Brazilian industry and electrical system, from generation to consumption, including transmission and distribution. This should also help Brazil fulfill its other commitment: to reduce greenhouse gas emissions by 37% by 2025 and by 43% by 2030.
The Paris Agreement requires absolute emissions reductions only from developed economies, but the Brazilian government voluntarily adhered to this for all sectors of the economy, such as livestock, agriculture, and industry. This is indeed a major challenge, but in the Brazilian context, we have a significant, yet untapped, opportunity that could contribute to solving it: investing in biomass-based energy generation. As an agricultural powerhouse, Brazil has a large-scale availability of organic waste. Among the benefits of biomass, the Brazilian Association of Public Cleaning and Special Waste Companies (Abrelpe) estimates the potential for a 29 million-ton reduction in carbon dioxide from electricity generation by organic waste and effluent disposal units per year.
In addition to reducing environmental impact, investing in biomass can bring efficiency and productivity gains to an important sector of the Brazilian economy like bioenergy. This is especially true considering the potential for increased production of cellulosic ethanol, known as second-generation ethanol, produced from sugarcane bagasse and straw. With this in mind, our researchers at the GE Research Center in Brazil developed an innovative solution for the bioenergy sector. The technology optimizes cellulosic ethanol production, making it more economically competitive by better utilizing the enzymes required for the process, which currently represent approximately 40% of operating costs. Furthermore, implementing GE technology enables a reduction in the volume of vinasse generated by partially reusing the water used (find out more here).
GE's commitment to Brazil doesn't stop there. There are many challenges, but also many opportunities. And these are just a few examples of how we're helping the country identify solutions to reach new heights in energy and climate change. I invite you to learn more in our Sustainability Profile.
We continue #TogetherPeloClima It is #TogetherForBrazilAt GE, we believe that #CanDoIt!
