January 4 (Renewables Now) - The Brazilian Development Bank, BNDES will lend BRL 1.81 billion (USD 484.5m/EUR 425m) to local firm Logum Logistica SA for the implementation of ethanol pipeline and storage infrastructure.
With about 353 km of pipelines already in operation, the new project will add 128 km of pipelines and terminals in three cities. This will connect the biofuel producers of the interior of Minas Gerais and Sao Paulo states to the main consumer centres in the metropolitan areas of Sao Paulo and Rio de Janeiro.
Logum also intends to implement an ethanol storage terminal in Guarulhos city that will act as a regulatory stock to guarantee more reliability and speed of delivery of the biofuel.
Upon completion, scheduled for 2021, the annual transportation capacity of the system will exceed 8 billion litres (2.1bn gallons). It will replace 400,000 truck trips per year in the metropolitan region of Sao Paulo, Logum's president Wagner Biasoli stated.
Based in Rio de Janeiro, Logum is a special purpose entity (SPE), whose shareholders are Brazilian state-run oil and gas company Petrobras (BVMF:PETR4), sugar and ethanol producer Raizen Energia SA, sugar and alcohol cooperative Copersucar and logistics firm Uniduto Logistica SA.
(BRL 1 = USD 0.27/EUR 0.23)