Compañía Azucarera Los Balcanes, owned by the Rocchia Ferro family, has proven to be an example of innovation and sustainability in Argentina’s agro-industrial sector. With more than 30 years of experience, this company not only stands out as the largest producer of ethanol from sugarcane in the country but has also embraced a firm commitment to the environment, betting on clean energy and sustainable practices in all its production processes.
Diversification and innovation in energy production
The company directly manages some 25,000 hectares of sugarcane fields and plans to reach a milling capacity of 4 million tons this harvest among its three mills. Although sugar production continues to be one of its pillars, the company has broadened its focus to bioethanol and electricity generation. This diversification effort responds both to market demands and to a sugar surplus in the country.
One of the group’s most recent and ambitious projects is the inauguration of a cogeneration plant that uses sugarcane bagasse residues to produce electricity, operated by the brand-new electrical company La Florida S.A. This facility, which required an investment of around US$30 million, has a generation capacity of 25 MW, of which a surplus of 13 MW is destined to the Argentine Interconnection System (SADI), equivalent to the energy consumption of 17,000 homes. The plant not only ensures self-supply of electricity to cover the operational needs of the La Florida sugar mill and distillery, but also contributes to the national energy grid, supporting the transition to cleaner and more sustainable energy sources.
This project finally came to fruition after years of management and planning, following the company’s inclusion in the RenovAr plan, a national program that promotes the production of renewable energies. This agreement implies a 20-year contract with the State, guaranteeing the sale of the energy generated at a price of US$94 per MW, with the support of the Inter-American Development Bank (IDB).
The largest producer of sugarcane ethanol in Argentina.
Los Balcanes’ commitment to diversification does not stop electric energy. The company has consolidated its position as the largest sugarcane bioethanol producer in the country, with a monthly production of more than 10 million liters for blending with naphtha. In Argentina, naphtha must be cut with 12% biofuel, and Los Balcanes plays a leading role in this chain, with an annual quota of 150,000 m³ of ethanol.
This ethanol production not only helps to reduce dependence on fossil fuels, but also opens new business opportunities for the company, while contributing to the reduction of carbon emissions in transportation. In this context, sugarcane growers play a crucial role, as 65% of the sugarcane processed by Los Balcanes comes from independent producers, highlighting the importance of collaboration between the industry and local farmers.
Sustainable use of waste
Los Balcanes’ commitment to sustainability is not limited to energy production. A key aspect of its approach is the efficient and environmentally friendly management of waste generated by the sugar-alcohol industry, such as cachaza (juice clarification residue), ash (derived from the burning of bagasse) and vinasse (alcohol manufacturing residue). Instead of discarding these materials, the company reuses them to produce compost, an organic fertilizer that is applied to the sugarcane fields managed by both Los Balcanes and associated regional producers.
The company’s company-owned Organic Fertilizer Production Plant (PPFO) processes this waste into high-quality compost. Its application not only improves the physical and chemical properties of soils, reducing the need for synthetic fertilizers, but also contributes to a cleaner and more efficient production cycle, closing the economic loop within agribusiness.
A Green Future for Tucuman
After a first stage of strenuous efforts and important investments to reduce its environmental liabilities, the business group started a clear path to improve its balance sheet from the generation of growing environmental assets: bioethanol, electric energy co-generated from renewable sources and compost being its main products.
The philosophy behind every step The Balkans takes reflects a vision of economic growth that is deeply rooted in sustainability. From the production of sugar and ethanol to the generation of electric power and the reuse of waste to fertilize crops, the company has demonstrated that it is possible to lead in the agribusiness sector while respecting the environment.
In the words of Tucuman Governor Osvaldo Jaldo during the inauguration of the power plant, “sugarcane is not just sugar,” a phrase that perfectly encapsulates Los Balcanes’ mission to broaden the horizons of the sugar industry toward a greener, more sustainable future.
As the company moves into its quarter century of operations, its focus on renewable energy and sustainable agricultural practices not only benefits the environment, but also strengthens the local economy, creating jobs and opportunities for regional producers. In a world where sustainability is no longer optional, Los Balcanes is positioned as a beacon of innovation and commitment in the Argentine sugar industry.