en.Wedoany.com Reported - The Brazilian Development Bank (BNDES) has approved two financing packages totaling 618 million Brazilian reais for the Aroeira Group to build a grain ethanol production plant in Tupaciguara, Minas Gerais. The financing structure includes 310 million reais from the Climate Fund and 105.5 million reais from Finem (Long-Term Investment Project Loan), along with another 202.5 million reais from the BNDES Machines and Services Loan for the acquisition of industrial equipment and production systems. The project's financial framework covers the approved BNDES financing as well as supplementary resources for working capital during the implementation phase and initial operational period.

The new plant will be operated by Biomil Ethanol Ltd., currently in the pre-operational phase, and is scheduled to begin operations in 2028, integrating into the group's industrial complex in Tupaciguara.

The plant will have an initial annual capacity to process 330,000 tons of grains (including corn and sorghum), producing 146 million liters of ethanol per year. It is expected to generate 92,000 tons of DDGS (Dried Distillers Grains with Solubles) annually, a key raw material for animal feed, particularly for beef and dairy cattle farming.

"BNDES is committed to the biofuels industry, which is crucial for accelerating the decarbonization of Brazil's energy matrix and transportation sector," said Aloizio Mercadante, President of BNDES. "This project strengthens a strategic supply chain for the energy transition while promoting employment and technological innovation, in line with the 'New Brazil Industry' plan."

"Grains, especially corn and sorghum, are important agricultural specialties of the region. Biomil aims to add value to this production, expand the Aroeira Group's raw material diversification, and enhance complementarity among different business lines. The project will also maintain ethanol production during the sugarcane off-season and drive the development of the grain, animal protein, and biofuel supply chains in the Triângulo Mineiro region," said Gabriel Feres Junqueira, CEO of the Aroeira Group.

The Aroeira Group's operations in Tupaciguara began in 2011, initially producing hydrous ethanol. Subsequently, the complex expanded its activities to include anhydrous ethanol production and electricity exports. In 2017, the group started sugar production. Currently, the group's main plant is Bioenergética Aroeira, which processes 4.5 million tons of sugarcane per harvest season, while producing 800 cubic meters of ethanol and 50,000 bags of sugar per day.

In addition to Bioenergética Aroeira, the complex includes the Tupaciguara Energy Center Ltd. (CET), focused on generating electricity from sugarcane bagasse, and Triângulo Energia S/A, which aims to participate in electricity auctions in the regulated market.

The group's industrial ecosystem also includes partnerships for producing biomethane and fertilizers using vinasse and filter cake generated during ethanol and sugar production. These initiatives reinforce its strategy of valuing by-products, improving operational efficiency, and advancing circular economy solutions.