Advances and Perspectives of Industrial Automation in the Sugar and Ethanol Sector

The Legacy and Innovation of Nova Smar

Introduction

The Brazilian sugarcane and bioenergy sector represents one of the fundamental pillars of the national economy and a global paradigm in terms of renewable energy. The 

transition from the old sugar industry to the contemporary bioenergy complex was not merely a change in nomenclature, but a technological revolution driven by the need for efficiency, sustainability, and competitiveness. At the heart of this transformation, industrial automation emerges as the central nervous system of the mills, allowing complex biological and mechanical processes to be monitored and controlled with millimeter precision. Nova Smar, based in Sertãozinho, in the heart of the world's largest sugarcane-producing region, has played a leading role in this evolution since its founding in 1974.

The automation of industrial processes can be understood through an analogy with the human body: sensors and transmitters act as the senses, capturing variations in pressure, temperature, and level; controllers function as the brain, processing information and making decisions based on algorithms; and actuators, such as valves and motors, represent the muscles that perform the actions necessary to maintain the system's equilibrium. In the sugarcane industry, this coordination is vital, as the processing of sugarcane involves highly dynamic variables and a raw material that begins its degradation immediately after harvesting.

This technical report details Nova Smar's trajectory, analyzing how the company identified technological gaps in the 1970s and 1980s and how its solutions shaped the automation standard of modern sugar mills. Beyond sugarcane, the analysis extends to the growing corn ethanol market, a segment that has received massive investments in Brazil and abroad. Operational challenges, the modularity of the technologies offered, the fundamental role of professional training through the Smar Academy, and disruptive innovations, such as the O-PAS standard, which promise to redefine industrial automation in the next decade, will be discussed.

Theoretical Framework - Process Automation and Smar's Vision

Industrial automation is defined as the use of control systems, such as computers or robots, and information technologies to manage different processes and machines in an industry to replace a human being. However, in Nova Smar's view, automation goes beyond replacement; it's about "operational excellence," which means optimizing and streamlining processes through real-time data analysis, facilitating intelligent and strategic decision-making at all levels of the organization.

Fundamentals of Process Control

Process control is based on maintaining variables (PV - Process Variable) around a desired value (SP - Set Point). In a sugar and ethanol plant, a classic example is temperature control in fermentation tanks. If the temperature exceeds the ideal limits for the yeast, the efficiency of sugar-to-ethanol conversion plummets, resulting in significant financial losses. Smar's contribution in this field began with mastering field instrumentation, evolving into complex digital control systems.

Automation architectures have evolved significantly in recent decades. Initially, control was pneumatic, evolving to 4-20 mA analog signals and subsequently to digital protocols. Nova Smar pioneered the implementation of technologies such as Foundation Fieldbus, which allows field instruments to not only send a measurement variable but also diagnostic and status information, drastically reducing maintenance costs and increasing reliability.

The Industry 4.0 Concept in the Bioenergy Sector

The transition to Industry 4.0 in the sugarcane and energy sector involves the integration of technologies such as the Industrial Internet of Things (IIoT), Big Data, and artificial intelligence. According to Nova Smar's management, the company has focused on providing tools that enable the digital transformation of sugar mills, transforming raw data into operational intelligence. Automation 4.0 allows a mill to predict failures before they occur and adjust the production mix (sugar vs. ethanol) in real time according to market fluctuations.

The effectiveness of an automation system can be mathematically described by its ability to minimize the integral error with respect to time. The use of advanced PID (Proportional-Integral-Derivative) controllers is the basis for stable control.

Where:

• u(t) is the output of the controller;
• e(t) is the error (SP - PV);
• Kp , Ki, and Kd are the gains tuned to the specific dynamics of each stage of the plant, from the mill to the distillery.

The Journey of Nova Smar - From Service to Cutting-Edge Technology

The history of Smar is a reflection of Brazilian technological entrepreneurship. Founded on April 1, 1974, the company began as a field service provider for steam turbines in the sugar industry. This humble origin was fundamental to its future success, as it allowed the founders to understand the inner workings of the mills and the real challenges faced by the operators.

Front Opening and Market Gaps

In the 1970s, the Brazilian sugar and ethanol sector was technologically deficient. Most processes were controlled manually or by rudimentary mechanical systems. There were no companies specializing in technologies dedicated exclusively to this sector in Brazil; the solutions available were generic adaptations from international petrochemical industries that did not always withstand the harsh conditions of the mills (excessive heat, humidity, vibration, and bagasse dust).

Smar identified that the biggest bottleneck was in the mill's feed. If the amount of sugarcane wasn't constant, juice extraction would be inefficient and the turbines could suffer damage from overload. In 1979, the company launched electronic regulators to dose the cane in the feeders, synchronizing the feeding conveyors and protecting shredders and defibrators. This was the first major innovation that opened the doors to modern automation in the sector.

Evolution to Global Reference

Building on its initial success, Smar expanded its R&D to develop a complete line of instruments: pressure, temperature, density, and level transmitters. In the 1990s, investment in Distributed Digital Control Systems (DCS) and pioneering work with the Fieldbus Foundation protocol propelled the brand into the international market, serving customers in over 77 countries.

In 2013, the company faced a severe financial crisis due to low demand in the sugar and ethanol sector and management problems, culminating in a request for judicial reorganization. However, in 2018, "Nova Smar" was born under an innovative management model, where employees became shareholders, preserving intellectual capital and the continuity of technological operations.

Complete Solutions and Modularity in the Industrial Process

One of Nova Smar's distinctive features is its ability to offer an "end-to-end" solution, covering everything from the arrival of the sugarcane truck to the delivery of ethanol or sugar to the market. However, the company adopts a modularity strategy, understanding that not every client has the capital to automate the entire plant at once.

Portfolio Scope

Sugar and ethanol customers can contract for the automation of just one stage (such as steam generation or the distillery) or integrate the entire industrial process. Smar's SYSTEM302 architecture is hybrid and flexible, allowing new technologies to be progressively added to the existing system without the need to discard previous investments.

Below is a description of Smar's technical expertise in the main industrial stages:

Customer Knowledge as a Differentiator

To develop these solutions, Smar needed to "live" the daily routine of sugar mills. The development of the DT301 density transmitter, which has won a global award, was a direct response to the need to accurately measure the concentration of juice and syrup in real time, something that was previously done through manual sampling and slow laboratory analysis. This in-depth knowledge allows Smar to meet not only the technical requirements, but also the maintenance and ease of operation needs demanded by the rural environment of sugar mills.

Challenges in Serving the Sugar and Ethanol Industry

Serving the sugar and ethanol sector presents unique challenges that differ from other branches of industrial automation. Seasonality is the first of these: mills operate 24 hours a day during the harvest season and stop for maintenance during the off-season. Any technological failure during the harvest can result in millions of reais in losses, as idle sugarcane rapidly loses quality.

Operational and Environmental Challenges

1. Harsh Environments: Electronic equipment needs to withstand high levels of vibration in the mills and chemical corrosion in juice treatment. Smar responded to this with high-strength enclosures and robust electronics;
2. Interoperability: Many plants have heterogeneous technological infrastructures, with equipment from different manufacturers (Siemens, Rockwell, ABB). The challenge has been to create systems that allow fluid communication between these devices. Participation in the international group, The Open Group, for the development of the O-PAS standard is a direct attempt to solve this problem of "technological lock-in";
3. Skilled Labor: The rapid evolution of digital technologies has created a knowledge gap in the field. Operators accustomed to analog systems need to be trained to handle digital networks and remote diagnostics.

Economic and Climate Challenges

The sector is highly sensitive to climate and commodity prices. In the 2024/25 harvest, Brazil faced low rainfall and high temperatures, resulting in a 3.8% drop in national sugarcane production. In crisis scenarios, investment in automation is often seen as a cost, when in fact it should be viewed as the only way to guarantee survival through overall process efficiency.

The Corn Ethanol Sector: Expansion and Success Stories

One of the most recent and dynamic chapters in bioenergy automation is the rise of corn ethanol in Brazil and Smar's international consolidation in this segment. Unlike

 sugarcane, corn processing allows for year-round operation, but requires additional industrial steps such as dry milling, liquefaction, and starch saccharification.

International Presence and the ACE Ethanol Case

Smar doesn't just serve companies in Brazil. Its global presence is exemplified by its provision of automation solutions to ACE Ethanol, one of the largest corn ethanol producers in the United States, since 2004.

• Impact of Brazilian Technology: ACE Ethanol processes 50,000 acres of corn per day and generates 54 million gallons of ethanol annually. The plant uses Smar's SYSTEM302 to integrate all field instrumentation;
• Results: The implementation significantly reduced technical downtime and increased the reliability of measurement systems under extreme conditions (harsh Wisconsin winters).

Growth in the Brazilian Scenario

In Brazil, companies like Inpasa and FS Bioenergia lead the production of corn ethanol, with investments totaling R$ 41 billion in 2025. Nova Smar has been following this trend, supplying technologies for large-scale plants, such as Inpasa 's new unit in Sidrolândia (MS), which received investments of R$ 1.2 billion. Corn ethanol currently represents about 8% of national production, but with a trend of accelerated growth due to the abundance of grains in the Midwest.

Smar Academy - The Educational Arm and Professional Training

Nova Smar recognized early on that the best technology in the world is useless without skilled professionals to operate it. To fill this gap, Smar Academy was created, a portal dedicated exclusively to the education and training of professionals in the field of industrial automation.

Smar Academy 's distinguishing features

Smar Academy is not just a training center; it is considered a unique benchmark within the automation segment due to its direct connection with the manufacturer. While general educational institutions focus on theory, Smar Academy offers hands-on learning "straight from the source."

1. Teaching Methods: Offers in-person training (In Company or at the headquarters in Sertãozinho), live web conferences, and a robust Distance Learning (EAD) platform;
2. Focus on the Sugar and Ethanol Sector: There are specific courses geared towards the needs of sugar mills, such as training in "Automation of Sugar Cooking Pans" and "Density and Concentration Transmitter," vital equipment for quality control of the final product;
3. Educational Resources: Smar provides educational plants and bench kits in various technologies (HART, Profibus, Foundation Fieldbus and O-PAS) for educational institutions, ensuring that the next generation of engineers is already familiar with cutting-edge tools.

It can be said that this service is unique in its segment in Brazil, as it combines decades of field experience with the latest Industry 4.0 trends, such as cybersecurity and cloud systems integration.

Innovations in Development and the Future of Automation

The future of sugarcane automation lies in open systems and full digitalization. Nova Smar is at the forefront of these changes, with innovations that promise to break down the proprietary barriers that have historically limited the industry.

The O-PAS Standard and the Partnership with WEG

One of Nova Smar's most strategic moves is its focus on the O-PAS (Open Process Automation Standard). Developed by the OPAF (Open Process Automation Forum), this standard aims to promote full interoperability: hardware and software from different manufacturers working together interchangeably.

• Smar & WEG Partnership: In a landmark initiative for national technology, Smar and WEG signed a memorandum of understanding (MoU) to accelerate the adoption of open technologies. Smar contributes its SYSTEM302 hybrid system architecture, while WEG contributes its electronic hardware capabilities and WEGnology cloud platform.
• Asset Management with Nardini: Another ongoing innovation is an asset management solution developed in partnership with the Nardini sugar mill. The four-year project aims to create a management model applicable to all sugar and ethanol industries in Brazil, enabling real-time diagnostics and a drastic reduction in operational costs.

New Hardware Releases

At the 31st Fenasucro & Agrocana trade show, the company presented a new pressure transmitter designed for applications up to 700 bar. According to Nova Smar, this equipment will allow them to gain an even larger share of the global pressure instrumentation market, which is the company's flagship product. Furthermore, advancements in 5G and IIoT connectivity are being integrated to enable plant control via mobile dashboards and cloud-based data analysis.

Statistical Analysis and Market Comparison

The automation market in Brazil is highly competitive, dominated by global giants, but Nova Smar maintains a leading technological and market position in the sugarcane and energy niche.

Market Sizing

The industrial automation and controls market in Brazil was valued at USD 11.23 billion in 2025, with a projected growth to USD 16.67 billion by 2031 (CAGR of 6.82%). Other surveys suggest more conservative figures of USD 4.65 billion in 2024, but all agree on consistent growth above 6% per year.

Competitors and Economic Differentiation

Below is a comparison between the main players operating in the Brazilian sugar and ethanol sector:

The major economic difference between a PLC-based system (like Rockwell) and a DCS (like Smar's SYSTEM302 or Emerson's DeltaV) lies in the initial cost and complexity. PLCs are usually cheaper for small, fast applications, while DCSs offer better software integration, native redundancy, and superior asset management for complex processes like those in a power plant.

Summary of Sugarcane Scenarios (2025/26 Crop Year)

The reliability of Smar's information depends on the health of the sugarcane and ethanol sector. Projections for the 2025/26 harvest in the Center-South region indicate a challenging scenario that will require greater industrial efficiency to compensate for losses in the field.

• Crushing: Estimated at 663.4 million tons, a volume 2% lower than the previous season.
• Productivity (TCH): Decrease of 2.3% to 4.1% due to unfavorable weather conditions and fires in São Paulo.
• Yield (ATR): A marginal increase in raw material quality (kg of ATR/ton) is expected, which reinforces the importance of automation to extract maximum value from each ton processed.

In this context, industrial automation ceases to be an option and becomes a survival requirement. The ability of a plant to operate with minimal error margins is what determines who will profit in years of crop failure.

Strategic Discussion - What Smar Wants to Highlight

A key point that Nova Smar wishes to emphasize is technological sovereignty and sustainable development. As a company that originated within the sugar mill, Smar understands that technology must serve the environment. Efficient automation reduces water waste, decreases the burning of fossil fuels through the optimization of cogeneration, and ensures that Brazilian biofuel is the cleanest and most competitive in the world.

Furthermore, the company emphasizes the importance of "Brazilian technology for the world." The fact that a plant in Wisconsin (USA) or Mato Grosso (Brazil) operates with the same control technology developed in Sertãozinho is a testament to the quality and resilience of national engineering. Smar positions itself not only as a supplier, but as a strategic partner that accompanies the plant's life cycle for decades.

Results and Detailed Discussion

Analysis of Nova Smar's financial and operational data reveals a company in full recovery and growth. In 2021, revenue increased by approximately 15%, ending the year with assets exceeding R$ 29 million.

Liquidity and Solvency Indicators

One technical statistic that proves Nova Smar's financial health is its current liquidity ratio:

In 2021, Smar's index was 3.56, significantly higher than the average for the Materials Industry (1.39), Machinery and Equipment (2.07), and Information Technology (2.18) sectors. This demonstrates an exceptional ability to honor short-term commitments and make new investments in R&D, ensuring that solutions for the sugarcane and energy market remain cutting-edge.

Impact of Automation on Plant ROI

The discussion about the return on investment (ROI) in sugarcane automation involves reducing invisible losses. For example, poorly executed pH control in juice treatment can cause fouling in evaporators, reducing heat exchange and increasing steam consumption by up to 15%. Through Smar's automation, process stability allows operation closer to ideal limits, generating efficiency gains that pay for the investment in just a few harvest months.

Future Investment Projections

With the advent of sustainable aviation fuel (SAF) and green hydrogen, the Brazilian sugarcane energy sector is entering a "second wave" of expansion. Nova Smar projects heavy investments in:

1. Industrial Cybersecurity: Protecting control networks against ransomware attacks;
2. Digital Twins: Creation of virtual models of power plants to simulate changes in the production mix before physical construction;
3. Cloud Edge Data Analytics: Integration with the WEGnology platform to provide real-time Key Performance Indicators (KPIs) for managers on their mobile devices.

Conclusion

Nova Smar's journey in the sugar and ethanol sector is a testament to the symbiosis between basic industry and high technology. From the mill regulators of the 1970s to its 

current leadership in the O-PAS standard, the company has proven that a deep understanding of customer needs is the engine of innovation.

Smar's solutions are modular and scalable, enabling plants of all sizes, in Brazil and abroad, to achieve operational excellence. The existence of the Smar Academy ensures that this knowledge is perpetuated and that the sector has the necessary professionals for the Industry 4.0 era. Despite climatic and economic challenges, the sugarcane and energy sector finds in industrial automation the tool to remain a protagonist in the global energy transition. The new Smar, with its renewed structure and strategic partnerships, is positioned to lead this technological evolution for the next fifty years.

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ADRIANO MARCELO CORTEZE  
Nova Smar S/A  
05/MAR/2026