Brazil’s National Social and Economic Development Bank (BNDES) said on Wednesday it had approved BRL 1 billion (USD 163m/EUR 158.5m) in financing for the construction of a plant for the production of second-generation cellulosic ethanol (E2G) by Raizen SA.
The domestic sugar exporter and cellulosic ethanol producer will build a plant with a capacity of 82 million litres (16.9m gallons) of cellulosic ethanol per year at the Andradina municipality, Sao Paulo state.
The new plant will be one of six the company has planned in the country to achieve E2G’s economic viability by 2028. In all, Raizen plans to invest some BRL 1.4 billion per plant.
Half of the approved funding comes from BNDES’ More Innovation Programme and the other half from the Climate Fund.
E2G is produced by specially formulated enzymes that extract the sugars present in the sugar cane bagasse cellulose, which are then fermented by yeasts. The biofuel can be used on several fronts, such as sustainable aviation fuel (SAF), for hydrogen and marine fuel production.
The national capacity for 2G ethanol production could reach 440 million litres of biofuel, considering Raizen’s six plants, BNDES noted.
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