Brazil's Petrobras Biocombustível, Grupo São Martinho to invest US$520.7M to expand sugarcane milling capacity of Boa Vista plant to 8 million tons in 2014-2015 season, will produce 700 million liters of ethanol, 600 GWh of electricity

RIO DE JANEIRO , August 18, 2011 (press release) – Petrobras Biocombustível and Grupo São Martinho, through Nova Fronteira, announces an investment plan worth US$520.7 million aimed at expanding the milling capacity of the Boa Vista plant to 8 million tons of sugarcane from the 2014/2015 season.

The unit, which is located in the municipality of Quirinópolis in Goiás has gradually increased its sugarcane processing capacity since its inauguration in 2008. 2 million tons of sugarcane was milled for the 2010/2011 harvest, with 2.3 million tons for the 2011/2012 harvest.

Of the amount to be invested, R$430.5 million will go towards the purchase of industrial equipment and R$90.2 million for agricultural equipment. Upon completion of the expansion, scheduled to take place in 2014, about 70% of the total production of the unit will come from own sugarcane.

From this investment, the Boa Vista plant will produce 700 million liters of ethanol, with an annual cogeneration of 600 000 MWh of electricity, which will make it the largest unit dedicated exclusively to the production of ethanol from sugarcane in the world. In addition, 3,000 jobs, both direct and indirect, will be generated in the region of Quirinópolis.

For Petrobras Biocombustível CEO Miguel Rossetto, "this great project should mark the beginning of a new cycle of investment in ethanol production for the country."

"The investments are essential to boost our production capacity and thereby increase the supply of ethanol in the market," said Fabio Venturelli, CEO of Nova Fronteira Bioenergia S.A.

The schedule of planned investment: 
 

Year

 

Value in R$

 

Milling capacity

 

(million tons)

 

2012/13

 

R$179.6 million

 

3.4

 

2013/14

 

R$326.1 million

 

4.0

 

2014/15

 

R$15.0 million

 

8.0

 

Total

 

R$520.7 million

 

 

 


About Petrobras Biocombustível

The Petrobras subsidiary has been operating in biofuel production since July 2008. In the ethanol sector, the company currently has interests in Nova Fronteira Bioenergia (GO), in Guarani (SP), and in Total Agroindústria Canavieira (MG). At the end of 2010, Petrobras Biocombustível held interests in ten plants, with a milling capacity of 24.5 million tons of cane, producing 942,000 m3 of ethanol and exporting of 517 GWh of electricity (power generation from sugarcane bagasse). The 2011-2015 Business Plan forecasts that investments of US$1.9 billion in ethanol production and a goal of reaching volumes of 5.6 billion liters in 2015 (with partners) and a 12% national market share.

About Grupo São Martinho

Grupo São Martinho is among the largest sugar and ethanol groups in Brazil with a milling capacity of 14 million tons of sugarcane.It has three operational plants: São Martinho in Pradópolis (Ribeirão Preto, SP); Iracema in Iracemápolis (a region of Limeira, SP) and Boa Vista (Quirinópolis, 300 km from Goiânia, GO). The average rate of mechanized harvest is 87.1%, reaching 100% in Usina Boa Vista.

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.