Raizen to Spend $102 Million on Brazil Cellulosic Ethanol Plant

Raizen Energia SA, a Brazilian joint venture of Royal Dutch Shell Plc (RDSA) and Cosan SA Industria & Commercio (CSAN3), will invest 200 million reais ($102 million) in a plant that will produce ethanol from sugar-cane residues.

The plant will be attached to its Costa Pinto cane mill in the southeastern city of Piracicaba and have capacity to produce 40 million liters of fuel a year, a press official for Raizen who didn’t want to be named because of company policy, said today in an e-mail. It may begin production next year.

Raizen, based in Barra Bonita, Brazil, plans to build eight additional cellulosic-ethanol plants through 2024. The company already makes ethanol from cane juice and using the crushed stalks and leaves will let it produce 50 percent more fuel from the same land, according to Raizen.

Shell has been researching the technology with Canada’s Iogen Corp. and U.S. company Codexis Inc. (CDXS)

To contact the reporter on this story: Stephan Nielsen in Sao Paulo at snielsen8@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.