Brazilian Transport Company Further Pursues Biofuels Projects

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Researched by Industrial Info Resources (Sugar Land, Texas)--Grupo Sada (Betim, Minas Gerais), one of Brazil's largest vehicle transport companies, entered the ethanol industry over the last two years. Through its subsidiary Sada Bioenergia e Agricultura (Betim), the company has owned and operated a sugarcane-based ethanol and power plant in Jaiba since 2007, and plans to build two more plants by 2012. These will be located in Bocaiuva, Minas Gerais, and Aragarcas, Goias.

The Bocaiuva facility will require a total investment of $70 million. About 25 million gallons of ethanol and 24 megawatts (MW) will be produced out of sugarcane feedstock annually. Company authorities said they expect construction to start in early 2010 and for the plant to begin operation in late 2011. Equipment companies and contractors have not been selected. Bidding is expected to begin around November.

The Aragarcas project will cost about $300 million. The plant's production capacities will be higher, as well, totaling 115 million gallons of ethanol per year and 110 MW. Construction is expected to last from mid-2010 to mid-2012. Equipment providers and contractors are expected to be selected in January 2010.

Electricity will be cogenerated in both plants utilizing bagasse-fueled steam turbines. This power will be used to feed the factories' processes, and the remaining energy will be sold to the grid.

Grupo Sada was incorporated in 1976 as a vehicle transport company. Since then, it has diversified its businesses, including logistics, steel, automotive parts and biofuels production, among others, through its numerous subsidiaries.

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