By Brazil Stock Guide – Brazil’s oil and biofuels regulator has authorized the start of operations at the country’s first industrial facility designed to produce ethanol from wheat, marking a new step in the diversification of feedstocks used in the renewable fuels sector.
The authorization allows CB Bioenergia, a privately held company with no publicly listed ticker, to begin production at its plant in Santiago, in the southern state of Rio Grande do Sul. The approval was published Thursday (8) in the federal government’s official gazette.
The facility is designed to process about 100 metric tons of wheat per day in its initial phase, with expected output of as much as 12 million liters of hydrated ethanol per year. Construction of the plant required investments of roughly 100 million reais ($20 million), according to project details submitted to the regulator.
CB Bioenergia plans to expand the Santiago unit over the coming years. By 2027, the company expects annual production to reach between 45 million and 50 million liters of ethanol. The expansion would require additional investments estimated at around 500 million reais.
Environmental clearance for the project was granted late last year, when the Rio Grande do Sul state government issued an operating license, clearing the way for the start of commercial activities. The federal authorization now formally integrates the plant into Brazil’s regulated biofuels market.