Vale do Vacaria Acucar e Alcool Ltda Plans Sugarcane Ethanol Plant

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Researched by Industrial Info Resources (Sugar Land, Texas)--The Brazilian company Vale do Vacaria Acucar e Alcool Ltda (Campo Grande) is performing the detailed design of a grassroot sugarcane processing plant, which will be located in Sidrolandia, in the state of Mato Grosso do Sul. The plant is to be operational by the end of 2012.

When fully operational, production levels are expected to reach about 5 million tons of sugarcane crushing per year, 45 million gallons of fuel ethanol, 140 megawatts (MW) of electric energy generated out of cane bagasse burning, and 290,000 tons of sugar. The number of people employed is estimated to be 2,160. However, only fuel ethanol will be produced at the Sidrolandia plant initially.

Currently, the company is carrying out the agricultural development, having planted 3,000 hectares of sugarcane. Expectations are to plant 6,000 hectares more in 2010. Construction of the industrial facilities is planned to begin in late 2010, or later in 2011 if Vale do Vacaria has troubles with the financing of the building. The investment required for the development of this greenfield project is estimated to be $225 million.

Vale do Vacaria is a subsidiary of Grupo Rede (SAO:REDE3) (Sao Paulo, Brazil), a company that produces, commercializes and distributes electric energy, feeding approximately 34% of the country's population. Grupo Rede is developing another sugarcane-based ethanol project in southern Brazil, in association with two other companies. For more details, view related September 2, 2009, article - Brazilian Joint Venture Moves Forward with Grassroot Fuel Ethanol Project.

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