The preliminary environmental license assesses environmental viability during planning and sets conditions for later licensing. It does not give CMPC permission to start building or operating the proposed new pulp mill.
The following article was originally posted online by Fordaq.
Oct. 27, 2026 - Brazil's Rio Grande do Sul government has delivered a preliminary environmental license for CMPC's planned Natureza pulp complex in Barra do Ribeiro, a proposed R$27 billion investment involving a new eucalyptus pulp mill and associated logistics facilities.
The state government said the license was delivered on October 23 at Palácio Piratini after Fepam reviewed the project's environmental studies. The project is planned for Barra do Ribeiro, in the Porto Alegre metropolitan area, while CMPC's existing Guaíba facility will remain in operation.
PaperAge editor's note: Fepam is the state environmental protection agency and licensing authority for the state of Rio Grande do Sul, Brazil.
The license, known in Brazil as a Licença Prévia or LP, assesses environmental viability during planning and sets conditions for later licensing. It does not give CMPC permission to start building or operating the proposed new mill. The next step is an installation license, subject to the regulator's further review of engineering plans and environmental controls.
Fepam says the review included an environmental impact study, a public hearing on 29 January 2026 and an opportunity for public submissions. These steps form part of the regulatory process rather than confirmation that the entire development is authorized.
The planned plant has a design capacity of 3 million tonnes per year of bleached eucalyptus kraft pulp, according to the state government and Fepam. This corrects a lower 2.5 million-tonne estimate that appeared in some secondary AI research summaries.
The announced R$27 billion investment includes logistics infrastructure. An export terminal at Rio Grande port carries an estimated R$1.5 billion investment within that wider project. The plan also includes land transport of wood and chemicals to the mill and waterway links with the planned terminal.
The project description includes kraft chemical recovery and electricity generation using black liquor, with enough power projected to supply the industrial site and potentially sell a surplus to the national grid. Those are design intentions, not operating performance already achieved.
Fepam has stated that an installation license must be granted before authorized construction starts. The company will need to submit further projects and documentation, and the regulator will assess compliance with the preliminary license conditions.
For suppliers of plantation wood, pulp equipment and export logistics, the milestone is a planning-stage clearance for a significant proposed Brazilian pulp investment. It is not a start-of-construction announcement or confirmation of a commissioning date.
Fordaq is the world's leading online B2B marketplace and networking platform for the timber and wood products industry. Founded in 2000 and based in Brussels, Belgium, it connects wood professionals, sawmills, manufacturers, and traders globally.
SOURCE: Fordaq