In Brazil, the National Bank for Economic and Social Development (BNDES) approved financing of R$ 625 million for the implementation of a new corn ethanol plant by São Martinho S/A. The project will allow the company to expand production at the Boa Vista Unit, an industrial complex located in Quirinópolis (GO), and will contribute to decarbonization, by avoiding emissions of around 380,000 metric tons of carbon dioxide equivalent (CO2e) per year.
The project will be financed with R$ 500 million from the Climate Fund and R$ 125 million via Finem. The R$ 625 million approved by BNDES represents 53% of the total investment. Another R$ 102.8 million will come from the Financia of Studies and Projects (Finep). The support of the two banks together represents about 62% of the total investment of the project, which also has R$ 452.2 million in the company’s own resources.
The operation strengthens the domestic equipment supply chain, since 34.1% of the project is intended for the acquisition of machines produced in the country. This percentage, however, may vary throughout the execution of the project, according to operational and contractual adjustments. Another expected result is the increase in Brazilian ethanol exports, contributing to the sector surplus and generating dollar currency to the country.
Tags: BNDES, Brazil, ethanol
Category: Fuels
