June 22 (Renewables Now) - Brazilian biodiesel plant operator BSBios will invest a total of BRL 556 million (USD 107.8m/EUR 102.2m) to build an ethanol production facility in Rio Grande do Sul, the state government announced this week.

An agreement signed between state officials and company representatives envisages an initial investment of BRL 316 million.

The project will be developed in two phases, the first of which is designed with an annual production capacity of 111 million litres of ethanol and is scheduled for completion by 2024. The second stage will expand the capacity of the plant to 220 million litres in 2027.

In addition to the production of hydrous and anhydrous ethanol, the facility will also make bran. BSBios will use cereals such as corn, wheat, triticale, rice, and sorghum, as primary sources.

At present, Rio Grande do Sul produces less than 1% of its ethanol demand. Once the new plant is in full swing, it should supply over 23% of the state’s needs.

(BRL 1.0 = USD 0.194/EUR 0.184)

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