Brazil's Bndes development bank approved R480mn ($79mn) for sugar and ethanol producer CMAA to increase biofuel production in the state of Minas Gerais.
The bank will grant R220mn from its Climate Fund to raise the private-sector company's anhydrous ethanol output in its Vale do Pontal sugar and ethanol unit, in Limeira do Oeste city, by around 1,470 b/d. The plant will be able to produce up to 3,650 b/d.
With new investments, the Vale do Pontal plant will process 4mn metric tonnes (t) of sugarcane/crop, up from 2.7mn t/crop previously, producing hydrous ethanol, raw sugar and electric power for the Brazilian domestic market.
The Climate Fund will be also used to double CMAA's power generation to 68MW.
The remaining R260mn will be taken from Bndes' services and machinery program to modernize existing equipment and buy new agricultural machines. CMAA's Vale do Pontal, Vale do Tijuco and Canapolis units are expected to use R50mn, R160mn and R50mn, respectively.
These resources can be allocated to buy, sell or produce machines, industrial systems or technological and automation goods, as well as hiring national services and machine imports, Bndes said.
The company will also be able to increase issuance of Cbio carbon credits, following the rise in ethanol output.
