BNDES okays USD-12m loan for biomass plant expansion

Sugar cane. Author: Jenny Mealing. License: Creative Commons, Attribution 2.0 Generic

June 24 (Renewables Now) - The Board of Directors of the Brazilian Development Bank (BNDES) has approved a BRL-46.9-million (USD 12.3m/EUR 10.7m) loan for the expansion to 35 MW from 12 MW of a bioenergy plant at a sugarcane mill in Minas Gerais state.

The generation capacity of the Central Energetica Tupaciguara sugarcane bagasse facility will be increased by 190%, enabling the export of 25 MW annually, a considerable increase from the current 5.5 MW. Owned by local Saci Perplan, the new project is expected to be fully completed by 2023, BNDES noted.

The financing will be used to purchase equipment and carry out civil works to increase the installed capacity of the co-generation plant.

The expansion involves the installation of elevation and switching substations, as well as transmission lines that will make the connectivity with the network of Brazilian utility Cia Energetica de Minas Gerais SA (BVMF:CMIG4), better known as Cemig.

(BRL 1 = USD 0.26/EUR 0.23)

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Lucas is based in Brazil. He joined Renewables Now to expand coverage of the Ibero-American market, a highly attractive destination for green energy investment.

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