$115 million corn ethanol facility opens in Brazil

Brazil’s ‘first’ large-scale corn ethanol production plant has started operations following a recent grand opening ceremony. The $115 million (€98 million) facility has been created to meet the country’s growing ethanol needs and introduce new feed options to the livestock industry.

Located in Lucas do Rio Verde, Mato Grosso, the new FS Bioenergia facility is the culmination of a collaboration between Brazilian agribusiness Fiagril and US-based Summit Agricultural Group, headquartered in Alden, Iowa.

FS Bioenergia will process 22 million bushels of corn and produce more than 60 million gallons of corn ethanol, 6,200 tons of corn oil and 170,000 tons of feed rations for Brazil’s expanding livestock industry.

Bruce Rastetter, founder and CEO of Summit Agricultural Group, said: “FS Bioenergia is the most modern and efficient ethanol production operation in the world and will revolutionise the biofuels landscape in Brazil.

“Summit Ag Group and Fiagril are proud to have delivered this historic project to Mato Grosso, and we look forward to the development of the region as a leader in ethanol, corn and livestock production.”

Landmark

According to a statement from Summit Ag, the new corn ethanol operation is a ‘landmark’ project for Brazil that will deliver ‘immediate value’ for the country. It is believed that the plant will help meet the increasing demand for domestic ethanol, which can’t be met by sugarcane ethanol production alone.

The facility will also introduce valuable fibre and protein co-products known as dried distillers’ grains (DDGs) to Mato Grosso. These products can serve as high-value feed for the expanding livestock industry in Brazil.

“This is a transformative moment for both agriculture and the renewable fuels industry in Brazil,” said Marino Franz, founder of Fiagril. “FS Bioenergia will not only meet Brazil’s growing demand for ethanol but it sets the stage for Mato Grosso to become a global leader in the production of corn ethanol.”

Construction commenced on the new facility in early 2016. When fully operational, FS Bioenergia will employ roughly 150 full-time workers. On top of ethanol and co-products for livestock feed, the ethanol facility will generate 60,000 megawatts of electricity to the local power grid.

Brazil produces approximately 25 percent of the world’s ethanol. Bank of America estimated that annual ethanol sales in Brazil could reach 13.5 billion U.S. gallons in 2022, two-thirds greater than the 8.1 billion gallons estimated in sugar cane ethanol production in 2016.

According to the statement from Summit Ag, the Mato Grosso region’s substantial corn production makes corn-derived ethanol the most viable option to complement existing sugar cane ethanol production and fulfil an annual multi-billion gallon shortfall.