Eike Batista has officially announced the acquisition of $500 million funding for his ambitious "super cane" project, which he claims could revolutionize the agribusiness sector. This genetically enhanced sugarcane variety is capable of producing three times more ethanol and twelve times more biomass than conventional sugarcane varieties.
Batista's grand vision does not just focus on ethanol; the super cane also holds promise for producing sustainable aviation fuel and biodegradable packaging materials from the residual biomass, potentially replacing harmful plastics. He confidently stated, "We see in the next 5 to 10 years, everything currently planted with traditional ethanol will gradually be replanted with 'super cane'."
The funding, structured by noted banker Mário Garnero and supported by the Abu Dhabi Investment Group (ADIG), will primarily facilitate the establishment of the first module, covering 70,000 hectares around the Porto do Açu region where the super cane will be cultivated. Once fully operational, this module is expected to generate one billion liters of ethanol and one million tons of biomass annually.
Investigative details about the project were also revealed, highlighting the establishment of additional production modules, including lands across Brazil and processing facilities located in Florida. Financing for these expansions will also involve the innovative launch of the $EIKE token, which Batman describes as the world’s first initial coin offering (ICO) backed by real agricultural assets—an unprecedented move within this industry.
"I was a pioneer back in 2006 with the IPO of MMX and six other IPOs. This time, we will be pioneers globally with the initial coin offering of a token backed by real assets," Batista remarked, signifying his goal for the project to scale remarkably.
The quest to develop super cane technology is not entirely fresh; its roots can be traced back over 20 years to two Brazilians—agriculturist Sizuo Matsuoka and manager Luis Carlos Rubio. Their early research efforts led to the creation of CanaVialis, which was acquired by Monsanto but later discontinued due to lack of commercial viability. Batista's renewed interest—in collaboration with these researchers—aims to not only revive these earlier advancements but to vastly improve them.
Through the genetic enhancement process, which involved extensive cross-breeding, the top five varieties of this new sugarcane can achieve yields of 181 to 208 tons per hectare compared to the traditional average of 58 tons. Eike described this achievement as "the largest genetic improvement for sugarcane in recent decades. These are two Brazilians who should be nominated for the Nobel Prize" for their groundbreaking work.
The strategic long-term plan for the super cane involves careful scaling, where each module will gradually expand its plantations—beginning with 50 hectares initially, ramping up to 20,000 hectares over three years. By year four, Batista anticipates each module achieving operational cash flow and aims for EBITDA of $5.9 billion, potentially catapulting each unit’s valuation to $63 billion at maturity.
Reacting to the environmental crisis, Batista emphasized the urgency for innovation within agriculture to lead to more resilient and productive crop varieties, noting the super cane's role in transitioning Brazil’s energy sector. He stated, “The residue from our super cane can replace plastics, which is central to the energy transition Brazil will lead.”
With the country seeking sustainable solutions to address climate change, Batista’s super cane project stands at the intersection of agriculture and technological advancement, presenting significant possibilities to transform both the farming and renewable energy spheres. He believes the super cane will not only redefine sugar production but also help Brazil emerge as a leader in the global shift toward more sustainable agricultural practices.