Jan 09, 2025 (MENAFN via COMTEX) --
(MENAFN - The Rio Times) The National Bank for Economic and Social Development (BNDES) has approved a R$ 1 billion ($161 million) financing package for RaiÌzen. This substantial investment will fund the construction of a second-generation cellulosic ethanol plant in Andradina, SaÌ?o Paulo.
The facility will produce up to 82 million liters of E2G annually. BNDES allocated R$ 500 million ($81 million) from its Innovation Program and R$ 500 million ($81 million) from the Climate Fund.
This plant forms part of a larger initiative to establish six E2G facilities across Brazil by 2028. The goal is to achieve economic viability for this advanced biofuel.
E2G shows promise in various applications, including sustainable aviation fuel, green hydrogen, and maritime fuel. RaiÌzen 's project will inject R$ 1.4 billion ($226 million) into the economy.
It will create over 1,500 direct jobs during construction and 200 permanent positions per plant. Unlike traditional ethanol production, E2G uses specially formulated enzymes to extract sugars from sugarcane bagasse cellulose.
Yeast then ferments these sugars into ethanol. This process maximizes resource utilization and reduces waste. Currently, E2G accounts for less than 1% of Brazil's ethanol production.
BNDES-RaiÌzen Partnership
BNDES's support could boost national capacity to 440 million liters across RaiÌzen's six plants. For context, Brazil produced an average of 34.2 billion liters of first-generation ethanol in 2024.
JoseÌ LuiÌs Gordon, BNDES Director of Productive Development, Innovation, and Foreign Trade, emphasized the project's alignment with Brazil's new industrial policy.
The initiative focuses on energy transition and technological innovation, promoting economic growth and sustainability. RaiÌzen's E2G project represents a significant step towards a greener future.
It demonstrates Brazil's commitment to innovative, sustainable energy solutions. The investment will likely spur further advancements in biofuel technology and production.
This development signals a shift towards more efficient, environmentally friendly fuel sources. It could potentially reshape Brazil's energy landscape and bolster its position in the global biofuels market.
The project's success may inspire similar initiatives worldwide. As the world seeks alternatives to fossil fuels, Brazil's E2G push could serve as a model for other nations.
In short, the BNDES-RaiÌzen partnership showcases how public-private collaboration can drive meaningful progress in sustainable energy production.
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COMTEX_461699000/2604/2025-01-09T03:06:00
