Brazil's BNDES to invest $294m in cellulosic ethanol project

22 January 2013 03:54  [Source: ICIS news]

CAMPINAS, Brazil (ICIS)--Brazilian development bank Banco Nacional de Desenvolvimento Economico e Social (BNDES), through its investment arm, bought a 15% stake in a biofuel firm GraalBio for reais (R) 600m ($294m, €221m), the parent bank said on Monday.

The injection of funds will be made gradually in line with the biofuel firm’s execution of its business plan, BNDES said in a statement.

GraalBio is building a cellulosic ethanol plant in the state of Alagoas, that is expected to begin operations by 2014, BNDES said.

Over the next six years, the biofuel firm is planning an investment of around R4bn, BNDES said.

Apart from building the biochemical and cellulosic ethanol plants, the resources will be used in research and development of technologies for the improvement of technologies on the use of biomass sugarcane, and on sugarcane genetic improvement, the bank said. 

($1 = R2.04)

By: Leo Siqueira
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