Brazilian Company was Approved Funding 40-MW Biomass Power Plant

The National Bank for Economic and Social Development (BNDES) approved a R$ 941.6 million financing to Grupo São Martinho S / A to carry out a series of investments in its plants located in the cities of São Paulo and Goiás. The group will build a new corn ethanol plant at Usina Boa Vista (UBV) and grain storage silos. The support also aims to build a new thermoelectric plant powered by sugarcane bagasse, UTE São Martinho Bioenergia, and to modernize the other thermoelectric plants to increase energy cogeneration, a process in which the steam produced from burning bagasse in the boiler produces electricity through turbogenerators.

Located in Quirinópolis (GO), UBV, which already produces ethanol from sugar cane, will start to produce fuel from corn in its industrial park. The plants have an installed capacity for up to 209 thousand m3 of ethanol and about 140 thousand tons of DDG (by-product of the distillation of corn, which is marketed as animal feed of greater nutritional value).

The project has innovative features by promoting the energy integration of a corn ethanol plant with an existing sugarcane plant. The silos that will be built could store 239 thousand tons of corn used in the production of biofuel. The UBV will also receive investments for expansion and modernization, increasing from 1,000 to 8,500 tons the annual production of yeast, the raw material for the production of animal feed.

The São Martinho Bioenergia UTE, a plant to be built in the industrial complex located in the municipality of Pradópolis (SP), will have the capacity to generate 40 MW of energy from biomass (sugarcane bagasse, waste from the manufacturing process of sugar and ethanol), and can sell up to 210 thousand MWh / year on the market. The project will allow the expansion of 22% of the energy cogeneration of Usina São Martinho, which has two more UTEs. The energy generated by the plant will also supply the consumption demand of the other plants in the complex.

Investments in innovation will also be made that will bring efficiency gains in production processes at the Santa Cruz and Iracema plants, in Américo Brasiliense (SP) and Iracemápolis (SP). It is worth mentioning the positive impacts that the interventions will bring to the national economy, due to the high investments in machinery and equipment of Brazilian manufacturers and the economy of the municipalities, located in micro-regions separated from the large metropolitan centers.

The financing of R$ 941.6 million represents 79% of the total investment, which adds up to R$ 1.2 billion. The forecast is that the projects will be fully implemented by 2026.

These initiatives are in line with the BNDES ‘role in financing projects on the ESG (Environmental, Social and Governance) agenda. “Support for São Martinho’s projects meets the demands of Brazilian society such as decarbonisation of the economy, care for the environment and incentives to improve productivity through innovation, combined with the generation of jobs and income from the productive activities of the sugar-energy sector “, highlighted Petrônio Cançado, director of Credit and Guarantees of the Bank.

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