May 22 (Renewables Now) - Banco do Brasil announced that it will provide BRL 1 billion (USD 304.6m/EUR 270.6m) in credit to finance bioenergy projects in the western region of Parana state.
Named Programa Agro Energia, the initiative focuses on the production of biogas in the agricultural sector. The credit lines should be used for the installation of biodigesters, purchase of the generators and integration of the agricultural property to the electrical network, the operator of the Brazil-Paraguayan Itaipu power generating dam (Itaipu Binacional), said on Friday.
In addition to Itaipu Binacional, the programme is also supported by Brazil's International Centre for Renewable Energy (CIBiogas), among other entities. Subsidised interest rates range from 2.5% to 8.5% annually, depending on the size of the project, and the return on investment is estimated in a maximum of five years, Itaipu pointed out.
Back in April, Banco do Brasil launched a credit line through Agro Energi, but for photovoltaic (PV) projects.
(BRL 1 = USD 0.305/EUR 0.271)