Brazil’s BNDES Approves $71 MM for Carbon Storage Project

Wedoany.com Report-Dec.13, Brazil's state development bank BNDES has approved funding for corn ethanol producer FS to construct the nation's inaugural carbon capture and storage facility at its production site in Mato Grosso state.

The bank committed 384.3 million reais in financing to support development of the installation.

FS aims to fully offset emissions from the plant located in Lucas do Rio Verde, targeting an annual volume of approximately 423,000 metric tonnes.

Brazil maintains a prominent position in ethanol manufacturing, with corn-based production experiencing notable expansion.

Data from the national corn ethanol association UNEM indicates that corn-derived ethanol currently constitutes 23% of total ethanol output in the country.

UNEM projects that corn will supply 40% of ethanol feedstock within Brazil over the coming ten years.

The initiative employs bioenergy with carbon capture and storage technology. It involves compressing carbon dioxide and injecting it into deep underground saline formations within the Parecis Basin.

BNDES President Aloizio Mercadante said the financing aligns with Brazil's energy transition goals and its Paris Agreement commitments to cut greenhouse gas emissions.

This development represents a significant step in integrating advanced emission management techniques into biofuel operations, contributing to sustained growth in renewable fuel capacity while addressing environmental objectives.