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Edineq, Usina Vale Building Cellulosic Brazil Ethanol Plant

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Nov. 14 (Bloomberg) -- Edeniq Inc., a U.S. developer of biofuels technology, has begun building a demonstration plant at Brazilian sugar-cane processor Usina Vale’s mill in Sao Paulo state to tap a growing domestic market for ethanol.

The facility, to be jointly owned by both companies, will be able to process as much as 20 tons of crushed cane stalks a day into sugars and then ethanol, Visalia, California-based Edeniq said in a statement today. The cost and production capacity of the plant weren’t disclosed.

Edeniq’s technology will help mills produce more ethanol as demand for fuel outstrips supply in Brazil, Brian Thome, chief executive officer of Edeniq, said today in a telephone interview.

“Demand in Brazil is growing,” he said. Ethanol “is already an established market there.”

Edeniq owns and operates a two-ton per day pilot plant in Visalia in partnership with Logos Technologies Inc., according to the statement.

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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