US-based Summit Agricultural Group will invest $100m for expanding FS Bioenergia, its corn ethanol production facility in the Brazilian state of Mato Grosso.
The investment is expected to help the FS Bioenergia plant in Lucas do Rio Verde to more than double its production capacity to 140 million gallons by early 2019. The current corn ethanol production at the facility is 60 million gallons.
Through the expansion, the FS Bioenergia plant, which was originally built with an investment of $115m, will process more than 50 million bushels of corn annually into the biofuel product.
Summit Agricultural Group founder and CEO Bruce Rastetter said: “This is a significant step for FS Bioenergia, but it's even more important for the growth of corn ethanol production in Brazil.
“When we began this project several years ago, we were confident of the opportunities in Brazilian renewables. Today, we're more convinced than ever of the potential for corn ethanol in Mato Grosso.”
Upon reaching full capacity, the FS Bioenergia plant will help Brazil address its growing demand for domestic ethanol, which is not being met by current sugarcane ethanol production, said Summit Agricultural.
Summit Agricultural Group managing director and private equity head Justin Kirchhoff said: “Brazil's long-standing commitment to renewable fuels coupled with an abundance of affordable feedstocks make for an attractive corn ethanol picture in Brazil.
“'As we look at the expansion of FS Bioenergia over this next year, we're in a strong position to benefit from these favorable conditions.”
According to Summit Agricultural, the FS Bioenergia expansion will use ICM’s process technologies as was the case with its original design and development. ICM had provided engineering, construction and operational services for over 100 ethanol plants across North America since 1995, said the company.
FS Bioenergia is an international collaboration of Summit Agricultural with Brazilian agribusiness Fiagril. The corn ethanol production facility had commenced operations in August 2017.
Image: The FS Bioenergia corn ethanol production facility in Brazil. Photo: courtesy of Summit Agricultural Group.