Brazil’s National Social and Economic Development Bank (BNDES) announced on Wednesday it has approved a BRL 1 billion (USD 163 million / EUR 158.5 million) financing package for the construction of a second-generation cellulosic ethanol (E2G) plant by Raizen SA, a leading sugar exporter and biofuel producer.
The new plant, set to be built in the municipality of Andradina in Sao Paulo state, will have a production capacity of 82 million liters (16.9 million gallons) of E2G per year. Raizen plans to establish a total of six similar plants across Brazil by 2028, aiming to make E2G commercially viable. Each plant will require an investment of approximately BRL 1.4 billion, the company stated.
BNDES is financing the project through its More Innovation Programme and the Climate Fund, with each program contributing half of the approved amount.
E2G is produced by using specialized enzymes to extract sugars from sugarcane bagasse cellulose, which are then fermented by yeasts. This advanced biofuel can be utilized for various purposes, including sustainable aviation fuel (SAF), hydrogen production, and marine fuels.
With Raizen’s six planned facilities, Brazil’s national E2G production capacity could reach 440 million liters of biofuel, according to BNDES.
