BNDES approves grant for sugarcane ethanol plant
The Brazilian Development Bank (BNDES) approved the grant funding for Adecoagro Valley Ivinhema of R $488.6 million. The funds will be used in the implementation of a new sugar mill and ethanol in the municipality of Ivinhema, Mato Grosso do Sul.
The design capacity of the plant is about 4.1 million tons of sugar cane per harvest. The project also includes the installation of a cogeneration power capacity of 120 MW and associated transmission line, in addition to supporting social project aimed at the local community. The project will be implemented in stages, and BNDES support will be restricted to investments to be held until 2014.
Adecoagro Valley Ivinhema integrates Adecoagro Group, international control. Founded in 2002, the group operates in Brazil, Argentina and Uruguay and develops activities in agriculture, including the cultivation of cereals, oilseeds, dairy, coffee, cotton and sugar, ethanol, cogeneration and livestock.
The project is being supported by the BNDES is now the second Adecoagro the group deploys in the sugarcane industry in Brazil. The first dates back to 2008, when the company began operating activities of Angelica Agroenergia, located in Mato Grosso do Sul, also supported by the BNDES. This unit has a crushing capacity of 4 million tons of cane sugar.
When the unit Ivinhema start operating in 2014, the group will come to a grinding about 9.3 million tons of sugarcane, which would, in modern terms, a share close to 1.5 percent of grinding national.
Currently, Adecoagro Ivinhema has 3781 direct employees. It is expected that upon completion of the project to be created over 1,360 direct jobs.