ERB Plans $109 Million Brazil Sugar-Cane Biomass Plant With Dow

Energias Renovaveis do Brasil Ltda., a Brazilian biomass-power developer, agreed to build a 237 million-real ($109 million) plant at a Dow Chemical Co. (DOW) ethanol project in Minas Gerais State fueled by sugar-cane residue.

The plant will have 46 megawatts of capacity and generate 230 tons of steam an hour, ERB, as the Sao Paulo-based company is known, said today in an e-mailed statement. It’s expected to go into operation next year.

The contract is ERB’s second in Brazil with Dow, which is building the Santa Vitoria ethanol mill with Mitsui & Co. (8031), an ERB press official, who asked not to be identified because of company policy, said today in an e-mail.

ERB agreed in December 2010 to build a 265 million-real wood-fired plant to produce steam for a Dow factory in the northeastern city of Aratu, according to ERB’s website.

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

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