ECNETNews reports that the National Bank for Economic and Social Development (BNDES) has approved a significant financing of R$ 500 million to enhance the production capacity of FS, a prominent player in the corn ethanol sector located in Mato Grosso.
The funding is sourced from the Climate Fund, managed by BNDES to support environmentally sustainable initiatives.
FS has a robust growth strategy in Mato Grosso, operating facilities in Lucas do Rio Verde, Sorriso, and Primavera do Leste. The company is set to establish a new operation in Querência, about 760 km from Cuiabá.
Rafael Abud, CEO of FS, emphasized the region’s strong corn production capabilities and its growth potential. He stated that its strategic location allows for an efficient logistics plan for distributing products throughout the state and to northern and northeastern regions of Brazil.
Currently, FS has the capacity to produce approximately 2.3 billion liters of ethanol annually and possesses advanced technology for manufacturing animal nutrition products known as DDG.
Established in 2009 and associated with the Ministry of Environment and Climate Change, the Climate Fund, under BNDES’s management, has allocated R$ 10.4 billion for financing projects across public, private, and third-sector entities.
As Brazil navigates its energy transition, corn ethanol is considered a pivotal resource. José Luis Gordon, Director of Productive Development, Innovation, and Foreign Trade at BNDES, identified the expanded availability of ethanol as crucial for ensuring a steady supply throughout the country.
Gordon also indicated in a recent interview that funding approval for biofuel projects is likely to increase in 2024, spurred by expanded resources from the Climate Fund.
“Brazil’s decarbonization is a cornerstone of the More Production Plan, with biofuels representing immense potential,” Gordon stated regarding the R$ 500 million financing for FS.
Aloizio Mercadante, President of BNDES, highlighted the “complementarity” of several national initiatives aimed at development, including the New Growth Acceleration Program (PAC), New Industry Brazil, and the Ecological Transformation Plan under the Lula administration.
Mercadante remarked that the FS financing exemplifies the synergy of these public policies, showcasing BNDES’s pivotal role in credit facilitation.
In recent comments, Mercadante noted that public funding is essential for achieving the energy transition and cautioned against relying solely on private sector loans, warning that inaction could lead to increased carbon emissions and climate change.
As Brazil approaches 2024, concerns over rising wildfires persist, exacerbated by the country’s worst drought since record-keeping began in 1950, according to the National Center for Monitoring and Disaster Alerts (Cemaden). Experts have pointed out that despite improvements in financial allocations compared to previous administrations, more substantial prioritization and organization are needed to effectively address the crisis, requiring collaboration between federal, state, and municipal governments as well as Congress.
