The Brazilian Development Bank, or BNDES, has approved a loan of about BRL 97.1 million (USD 23.4m/EUR 21m) to support a biogas project by local sugar and ethanol producing company Cocal Energia.
The financing will back the construction and installation of a biomethane and clean electricity generating plant at Cocal's Narandiba municipality unit, in Sao Paulo state, the bank said on Monday. The facility will use the waste generated during the production of ethanol and sugar, such as sugarcane straw, filter cake and vinasse.
Cocal Energia expects to produce 33 million cubic metres per year of biogas. It will use half for biomethane production and half for electricity generation. The biomethane will serve as fuel for Cocal's fleet of vehicles and for Petrobras-owned (BVMF:PETR4) natural gas distributor Gas Brasiliano.
BNDES' loan covers 69% of the total project investment of BRL 139.7 million. About BRL 30 million of the approved loan comes from the Climate Fund, which supports investments in local renewable energy and transmission projects.
Overall, Cocal Energia plans to export 40,000 MWh per year of biogas via distributed generation (DG), BNDES noted.
This month alone, the bank has approved close to BRL 1.4 billion in loans for 370.8 MW of wind projects and a 14-MW small hydropower plant (HPP).
(BRL 1 = USD 0.241/EUR 0.217)
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