By Brazil Stock Guide – Brazil’s development bank BNDES approved 575.3 million reais ($115 million) in financing to expand a corn ethanol facility in Mato Grosso, a move aimed at boosting renewable fuel output and regional economic activity.
The project will benefit ALD Bioenergia Deciolândia S.A., a privately held company backed by 24 rural producers linked to the Cooad cooperative. The funding package includes 359.5 million reais through Finem and Climate Fund credit lines, plus 215.8 million reais in equipment financing via BNDES machinery programs, according to information originally reported by Brasil 247.
The expansion will increase the plant’s corn processing capacity from 335,000 tons to 900,000 tons per year. Ethanol output is expected to rise from 150 million liters to as much as 400 million liters annually, significantly scaling the company’s production footprint.
The project also includes higher output of corn oil and distillers dried grains (DDGs), key byproducts used in animal feed, strengthening the agricultural supply chain in the region.
Chief Executive Officer Marco Orozimbo said the investment will drive job creation during and after construction. “The investments should generate around 400 indirect jobs during the implementation phase. After completion, the number of direct employees is expected to increase from 188 to 275, in addition to a rise in indirect workers from 50 to 100,” he said.
BNDES President Aloizio Mercadante highlighted the strategic role of renewable energy in Brazil’s policy framework. “Consolidating Brazil’s position as a global leader in clean energy, with about 89% of renewable sources, is one of the priorities of the Lula administration. BNDES is the agent responsible for implementing this public policy,” he said, noting the bank’s recognition as the world’s largest renewable energy financier by Bloomberg.
José Afonso Gonçalves, chairman of ALD Bioenergia’s board, described the investment as a new growth cycle for the company. “We continue to advance with consistency and responsibility, expanding our operations and strengthening the regional production chain. This project represents a new phase of growth,” he said.