Monday, January 21, 2013

GraalBio Gets $294 Million from BNDES

GraalBio cellulose ethanol plant, to be based in Brazil, has reportedly received investment capital from BNDES, the state development bank of Brazil, garnering $294 million. The plant is scheduled to open in the early part of 2014.

The investment arm of the bank, BNDESPar, will provide the financing for the project. BNDES will receive
15 percent of the company and one seat on the board of directors of the company.

Ethanol production on an annual basis will be able to reach 22 million gallons, and would be the first second generation ethanol facility located in the southern hemisphere. Second generation ethanol refers to the use of plant material not used for food in producing fuel, otherwise known as cellulose ethanol.

Many believe, as far as ethanol goes, that cellulose will be more widely adopted as a biofuel because it doesn't interfere with the food supply.

Early in 2012 Novozymes said it'll be providing enzymes to GraalBio.