Brazil's CB Bioenergia to invest USD 15m in new ethanol plant
Wheat. Image source: Pixabay.
Brazilian bioenergy firm CB Bioenergia will invest a total of BRL 75 million (USD 14.7m/EUR 14.8m) to set up an ethanol production facility in Rio Grande do Sul, the state government announced on Tuesday.
A protocol has been signed by state officials and company representatives to enable an investment of BRL 35 million through state incentives.
The plant will have an annual production capacity of 10 million litres (2.6m gallons) of ethanol and is scheduled to be up and running by the first half of 2023. Unlike most factories in the country, CB Bioenergia's site will not use sugarcane as raw material but rather wheat, triticale and corn.
The ethanol produced at the new factory will be supplied to the agricultural aviation market and fuel distributors that will mix the biofuel with gasoline.
At present, Rio Grande do Sul produces 1% of the ethanol needed in the state, but the government expects up to 50% of the state demand to be met by local production at the end of this decade, the Secretary for Economic Development, Joel Maraschin, noted.