Brazil begins 2G ethanol production

Sep 24, 2014 12:00 AM

Brazilian biofuel firm Granbio has begun producing second generation ethanol at its Bioflex 1 plant in the northeastern state of Alagoas.

 

Using straw and sugarcane bagasse as its primary feedstock, the plant is the first of its type to begin commercial operations in the southern hemisphere, Granbio said in a statement on Wednesday.

The facility currently has a production capacity of 82Ml/y.

According to Granbio's president, Bernardo Gradin, output from the plant will be used to meet domestic biofuel demand.

"We don't expect to export in the first 4-6 months of production," Gradin said, adding exports could begin in the second half of 2015.

"Our aim is to [eventually] allocate 50% of output to the domestic market and 50% to exports. But that will depend on market conditions."

California, where Granbio says it has a strong rapport with local industry, is the company's principal export target, according to Gradin.

Brazil is only the third country to produce 2G ethanol on a commercial scale, alongside the US and Italy.

Granbio plans to invest 4bn reais (US1.8bn) over the next decade to build 10 second-generation ethanol plants.

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