en.Wedoany.com Reported - The Brazilian Development Bank (BNDES) has approved R$618 million in financing to support the Aroeira Group in building a new grain ethanol plant in Tupaciguara, Minas Gerais, with the project scheduled to begin operations in 2028.
The funds come from three sources: R$310 million from the Climate Fund (Fundo Clima) for projects or research aimed at mitigating climate change; R$105.5 million from the Finem credit line for long-term investment projects; and R$202.5 million from the BNDES Máquinas e Serviços credit line for the acquisition of industrial production and system equipment.
The new plant will be operated by Biomil Etanol Ltda. and is planned to be integrated into the Aroeira Group's industrial complex in Tupaciguara. The initial design capacity is to process 330,000 tons of grains (including corn and sorghum) annually, producing 146 million liters of ethanol per year. Additionally, it is expected to generate 92,000 tons of DDGS (Distillers Dried Grains with Solubles) annually, a product primarily used as feed for beef and dairy cattle.
BNDES President Aloizio Mercadante stated that BNDES is committed to promoting the development of the biofuel industry. This project helps accelerate the decarbonization process of Brazil's energy structure and transportation sector, while also generating employment and technological innovation, aligning with the "New Industry Brazil" (Nova Indústria Brasil) policy.
Aroeira Group CEO Gabriel Feres Junqueira noted that corn and sorghum are important agricultural advantages in the Triângulo Mineiro region. Biomil was established to add value to these agricultural products, expand the group's raw material diversification, and strengthen complementarity among different business segments. The project will also maintain ethanol production during the sugarcane off-season, promoting the development of the grain, animal protein, and biofuel industry chains in the region.
The Aroeira Group's operations in Tupaciguara began in 2011, initially producing hydrous ethanol, later expanding to anhydrous ethanol and electricity exports. In 2017, the group began producing sugar. Currently, the group's main plant is Bioenergética Aroeira, which can process 4.5 million tons of sugarcane per harvest season, producing 800 cubic meters of ethanol and 50,000 bags of sugar daily. The group also owns the Tupaciguara Energy Center, which generates electricity from sugarcane bagasse and participates in power trading auctions through Triângulo Energia. Additionally, the group utilizes waste materials such as vinasse and filter cake from ethanol and sugar production to produce biomethane and fertilizers in partnership with others.
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