Brazil BNDES to finance new biodiesel plant

02 April 2007 23:30  [Source: ICIS news]

HOUSTON (ICIS news)--Brazil’s development bank (BNDES) on Monday said it would lend $17m to Brazilian grain processor Granol for the construction of a biodiesel plant.

The 88,000 tonne/year facility will be Granol’s third biodiesel plant. The company already produces 110,000 tonnes/year of the biofuel at its two other plants.

Under the deal, Granol will invest $4.3m in the new project of its own capital, the bank said.

Brazil will mandate a blend of 2% of biodiesel into conventional diesel in 2008, according to legislation approved in 2005.

The figure will jump to 5% in 2013, creating a market for 2.4bn litres/year of the biofuel, one analyst predicted.

By: William Lemos
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