BNDES approves $79.2M for CMAA to expand ethanol and bioenergy production

In Brazil, the National Bank for Economic and Social Development (BNDES) approved financing totaling R$480 million for the industrial units of Companhia Mineira de Açúcar e Álcool (CMAA) to expand ethanol production and energy generation from biomass. sugarcane, and for industrial modernization and equipment acquisition.

With R$220 million from the Climate Fund, Vale do Pontal Açúcar e Etanol S/A, an industrial unit located in Limeira do Oeste (MG), will expand its anhydrous ethanol production capacity from sugarcane by up to 85 thousand m3 per year, reaching 205 thousand m3 per harvest. And also, expand energy generation from biomass by up to 34 MW, reaching 68 MW. To this end, Vale do Pontal will increase its steam generation capacity from 230 t/h to 430 t/h. The total investment in the project is R$289.4 million and should generate more than 500 jobs.

Currently, Vale do Pontal has the capacity to process 2.7 million tons of sugarcane per harvest (April to November), producing hydrated ethanol (domestic market), VHP type sugar (predominantly destined for export) and electricity, which serves industrial consumption and the agricultural area. The surplus is injected into the National Interconnected System. With the financing, the plant will process 4 million tons of sugarcane per harvest.

With the increase in ethanol production, Vale do Pontal will also increase its capacity to generate Carbonization Certificates (CBios), issued from the production and commercialization of biofuels, such as ethanol and biodiesel, in Brazil. Each CBio corresponds to the reduction of one ton of carbon dioxide (CO2) equivalent in greenhouse gas emissions. These credits are used as emissions compensation instruments by fuel distributors, who need to meet decarbonization targets established by the RenovaBio Policy.