Brazil Dedini to build ethanol mills in Venezuela

02 July 2008 23:42  [Source: ICIS news]

PIRACICABA, Brazil (ICIS news)--Brazil’s equipment maker Dedini will build four ethanol mills in Venezuela, each with a capacity of 700,000 litre/day, the company said on Wednesday.

“Dedini will supply the parts and also supervise the construction of the plants at the site,” a company official said during an industry event in Piracicaba, Brazil.

All four units are scheduled to be operational by early 2010, Dedini said.

No financial details were disclosed, but a market participants close to the operation said Petroleos de Venezuela SA (PDVSA) will pay a total of $150m (€95m) for all four mills.

In 2007, Dedini built a small 25,000 litre/day ethanol plant for PDVSA, which the company said was the “embryo” of a larger biofuels project in Venezuela.

Venezuela plans to blend ethanol in gasoline at 10%, but the country wants to be self-sufficient in the production of the biofuel, Dedini said.

PDVSA expects to have 14 sugarcane-based ethanol mills in operation by 2012, according to Dedini.

Dedini announced its latest deal with PDVSA during the 2008 SIMTEC, an annual sugar and ethanol industry technology exhibition.

($1 = €0.63)

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By: William Lemos
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