BNDES approves loan for biomass project in Sao Paulo

Brazil's National Economic and Social Development Bank (BNDES) approved a R$62.9 million financing for the expansion of the cogeneration capacity of Pitangueiras Açúcar e Álcool Ltda, a plant located in the municipality of Pitangueiras (SP), to 60 km from Ribeirão Preto.

The objective is to optimize the industrial capacity of the enterprise and to maximize the potential of energy generation from the bagasse produced. The project also includes the interconnection of its substation to the network of Companhia Paulista de Força e Luz (CPFL).

With a total investment of R$78.6 million, the project involves the acquisition of cogeneration machinery, construction of an elevated substation connected to the Morro Agudo system, implementation of a 7 km transmission line, and civil works.

Currently, the sugarcane mill already produces enough energy for its operation and has a surplus of 90 thousand MWh that is traded in the free market. Upon completion of the project, which has a two year deployment period, the generation capacity per hour will be increased to 70 MW, an expansion of 180%. The energy export potential will increase by 133%, reaching 210 thousand MWh in each crop year, an amount capable of supplying 44 thousand homes annually. Considering only the investment in the project, the energy generated is sufficient to serve 25 thousand households per year.