Grupo FS Bioenergia Halts Investments as Corn Ethanol Sector Reacts to COVID-19, an Industrial Info Market Brief

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As a result of the ongoing COVID-19 pandemic in Brazil, Grupo FS Bioenergia, a joint venture between Fiagril Participacoes SA and Summit Biodiesel LLC, has decided to halt all ongoing construction projects for up to six months. The ongoing expansion at FS Bioenergia's 550 million-liter-per-year corn-based fuel ethanol plant in Sorriso has been suspended in order to maintain and preserve the company's finances, as well as ensure the health of its employees.

Furthermore, the company's third plant in Nova Mutum, which had commenced site preparation earlier this year, with civil construction scheduled to kick off during the second semester, has also been delayed. Nevertheless, the company intends for the 530 million-liter-per-year production plant to commence construction as planned later in the year.

In addition to Nova Mutum, FS Bioenergia plans to invest in three more grassroot projects in the Brazilian state of Mato Grosso: in Querencia, Primavera do Leste and Campo Novo do Parecis. For the time being, the company does not foresee any substantial delays to these investments as they continue to undertake the environmental or governmental permit approval process, and may not be complete for another three to five years.

Industrial Info is tracking 22 active Grupo FS Bioenergia projects in the state of Mato Grosso worth $837.58 million. Click here for a list of projects.