Infinity Bio-Energy to Invest in Caribbean Ethanol Project

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Researched by Industrial Info Resources (Sugar Land, Texas). The Brazilian based, Infinity Bio-Energy (NYSE:IBI ), has signed a term sheet to formalize a Joint Venture with Biotenol Boca Chica S.A. and announced an investment in the Dominican Republic to produce ethanol and construct a plant with a capacity to produce 2.5 million tons of sugarcane, which will produce 210 thousand cubic metres per year and dehydrate 400 thousand cubic metres of alcohol fuel. The total investment will be carried out in two stages: a first phase that will require $90 million, and then a second phase, which will reach $120 million. Infinity and Biotenol Boca Chica S.A. aim at exporting to the United States, in order to take advantage of the Caribbean Basin Recovery Act (CBERA). Under this agreement, the ethanol produced in Caribbean soil is admitted free of duty and the applied limitations depend on the quantity of local feedstock content of the product.

Infinity entered in the Brazilian Market in March 2006 and it operates four sugar and alcohol plants in Brazil. Three of them were acquired by the company in 2006 with financial resources from big international investors. The plants are Cridasa, Usinavi and Alcana, located in Pedro Canario (ES), Naviraí (MS) and Nanuque (MG) respectively. The fourth plant is owned by Infinity in partnership with DISA, DESTILARIA ITAUNAS S/A., and it consists of an industrial complex with a grinding capacity of 3.3 million tons of sugarcane. These two companies also agreed on duplicating the sugar and alcohol production in the north of Espirito Santo State in the next years. Nowadays, Infinity is processing over 5.3 million tons of sugarcane, which in turn produce 250 million litters of ethanol, 40% of which is converted into sugar and 60% in alcohol. In the next two years, the company plans on expanding alcohol production to over 80%.

Infinity also plans on building five new plants, Jateí, Laranjaí and Iguatemi in Naviraí City (MS), which will be used for alcohol fuel and each will process 3 million tons per year, and the Montasa and Mucurici plants. In March, 2007, Infinity also signed an agreement with CADASA- Central Azucarero de Alanje S.A, a sugar production company, in the province of Chiriqui, Panama, to build a Plant and a Dehydrator in that country.

Infinity Bio-Energy Group will invest over $800 million and expects to become one of the world’s biggest ethanol producers.

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