CB Bioenergia, a bioenergy firm from Brazil, will be setting up an ethanol production plant in Rio Grande do Sul by investing BRL 75 million (USD 14.7 million/EUR 14.8 m), announced the state government on Tuesday.
According to the media report, the company has signed an agreement with the state government to enable the investment of BRL 35 million through state incentives. The annual capacity of the plant will be 2.6m gallons (10 million litres) and will start operations by the first half of 2023. The plant will use wheat, triticale and corn as raw material and not sugarcane.
The company at present produces 1% of the ethanol required by the state. The state government is expecting to produce 50% of the total demand by domestic producers at the end of the decade, stated the Secretary for Economic Development, Joel Maraschino.
The company will be supplying ethanol produced from the plant to the agricultural aviation market and mixing biofuel with gasoline.
