Banco Nacional de Desenvolvimento Economico & Social, Brazil’s development bank, will loan a division of GranBio Investimentos SA 300.3 million reais ($149.6 million) to build the world’s second plant that produces ethanol from crop waste.
The 350 million-real plant is planned for the northeastern city of Sao Miguel dos Campos and will be able to produce 82 million liters (22 million gallons) of fuel a year from sugar-cane residues, the Rio de Janeiro-based lender said in an e-mailed statement today. BNDES, as it is known, owns 15 percent of Sao Paulo-based GranBio.
The technology allows mills to produce 45 percent more fuel from cane’s straw and crushed stems. The first such plant was built in Italy, according to the statement.
GranBio said in January it expected to receive 280 million reais in financing from the bank for the project.