BNDES okays USD-15m loan for biomethane project in Brazil

The Brazilian Development Bank (BNDES) will extend a loan of BRL 80 million (USD 14.7m/EUR 13.8m) to UISA Geo Biogas SA for the implementation of a biogas and sugarcane bagasse-biomass plant in Mato Grosso state.

The financing will cover 33% of the total cost of the project, which is estimated at BRL 243.5 million, the bank said on Wednesday. It supports the installation of equipment for the production of 11.4 million cubic metres of biomethane and 32,000 MWh of clean electricity per year.

To be built in the municipality of Nova Olimpia, the biogas facility is scheduled to commence operations in December 2024. The produced biomethane will be distributed across the region and a portion will be used to replace the diesel in part of the truck fleet of UISA. The generated electricity should cover the unit's own demand and what is left could be exported, the bank said.

In addition to biomethane and electricity, the facility will also be capable of producing solid and liquid biofertilisers.

BNDES noted that UISA is a 51/49 joint venture between local companies Geo Investimentos e Participacoes SA and Usinas Itamarati SA.

(BRL 1.0 = USD 0.184/EUR 0.173)

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