BNDES approves R$592.1 million for four innovative projects in the sugar and ethanol industry

BNDES approves R$592.1 million for four innovative projects in the sugar and ethanol industry

Resources will enable Brazil‘s fourth cellulosic ethanol plant and include the first projects approved from the PAISS Agriculture program and the Inova Sustainability plan

The Brazilian Development Bank (BNDES) approved loans for four projects in the sugar and ethanol industry, totaling R$592.1 million. The largest operation is with Abengoa Bioenergia Agroindústria S.A., which will receive R$309.6 million to implement a second-generation (2G) ethanol plant.

It will be Brazil‘s fourth 2G ethanol plant with nominal capacity of 64 million liters per harvest year. The unit will be integrated to the traditional ethanol production process, at the São Luiz Plant, in Pirassununga, São Paulo. With this investment, Brazil‘s 2G ethanol production installed capacity will reach almost 200 million liters per harvest year.

PAISS Agriculture program – the first two projects under the PAISS Agriculture program were approved. The first operation approved was that of Biovertis Produção Agrícola Ltda., in Barra de São Miguel, Alagoas, which will receive R$139.3 million. The funds will be allocated to investments in the establishment of a management system suitable for energy sugarcane, which is a type of sugarcane with high productivity and a higher concentration of biomass

The project will develop different high performance management techniques for various activities, including soil preparation, planting, crop treatment, harvesting and transportation.

The second approval under the PAISS Agriculture program was that of Raizen Energia S.A. totaling R$4.5 million, whose goal is to enable large-scale agile and efficient techniques for the propagation of pre-germinated sugarcane cuttings. With the new technique, we expect to significantly reduce planting costs and increase the quality of the sugarcane crop germination, contributing to improving agricultural productivity in the sect.

Inova Sustainability plan – the sugar and ethanol industry was responsible for BNDES‘ first approval under the Inova Sustainability plan, a program in partnership with Finep that seeks, among other objectives, to support the technological development and dissemination of products and processes that promote sustainable production.

The operation approved by the BNDES‘ Executive Board was submitted by Cerradinho Bioenergia S.A., totaling R$138.8 million for investments in research and development (R&D) related to the implementation of a sugarcane dry-cleaning system and the implementation of a system for receiving and sorting sugarcane and brachiaria straw bales in the Chapadão do Céu industrial unit, in Goiás.

With these funds, Cerradinho will also invest in purchasing national machinery and equipment. They will be used for receiving and sorting sugarcane and brachiaria straw bales. The project also includes investments that should increase the plant‘s electricity cogeneration capacity from 70MW to 160 MW. The company will also acquire a sugarcane dry-cleaning system for the Chapadão do Céu unit.

Last Update on December 18, 2014