Brazil's BNDES approves USD 17m for pellet factory in Rio Grande do Sul
Wood pellets. Author: U.S. Department of Agriculture. License: Creative Commons, Attribution 2.0 Generic
The Brazilian Development Bank, or BNDES, approved on Monday BRL 59.4 million (USD 17.1m/EUR 15.4m) in financing to local firm Tanac SA for the construction of a pellet factory in Rio Grande do Sul state.
Based in the city of Rio Grande, the project will have a production capacity of 350,000 tonnes per year. BNDES financial contribution will account for 39.5% of the total investment in the project.
This new facility will be the largest producer of pellets in Latin America and the first unit in the world to utilize wood from black wattle as source material, BNDES noted.
Aside from strengthening the region's economy, the pellet factory is expected to contribute positively to Brazil's trade balance, since the product is intended for export.