Highlights
SÃO MARTINHO RECEIVES APPROVAL FOR R$941.6 MILLION
FINANCING LINE FROM BNDES
Funds will be invested in technological modernization projects to increase agro-industrial productivity and efficiency at the Company’s units
São Paulo, January 20, 2021 – São Martinho, one of Brazil’s largest sugar and ethanol groups, has received the approval for a R$941.6 million financing line from the Brazilian Development Bank (BNDES) for a series of investments in projects aimed at technological modernization and increasing agro-industrial productivity and efficiency at all of the Company’s mills.
The financing will be used to build a corn ethanol mill attached to the Boa Vista Mill in Quirinópolis, Goiás, with annual production capacity of around 210,000m3 of ethanol (110,000m3 hydrous ethanol and 100,000m3 anhydrous ethanol), 150,000 tons of DDGS (a byproduct used in animal feed) and 10,000 tons of corn oil. The additional ethanol production in Goiás will enable the Company to expand the issue of Decarbonization Credits (CBIOs) in the coming years, in accordance with the targets set in the RenovaBio program. Operational startup of the new mill is scheduled for November 2022, initially at 50% capacity during the 2022/23 crop year and 100% from the 2023/24 crop year.
The new investments will also go towards building a new thermal power plant fueled by sugarcane bagasse – UTE São Martinho Bioenergia – inside the industrial complex in Pradópolis, São Paulo. The thermal power plant will have generation capacity of around 210,000 MWh, of which 177,000 MWh have already been contracted for 25 years through the A-6 auction held in October 2019, which will represent a 22% increase in the co-generation of clean energy during a process in which steam produced from the burning of bagasse in the boiler generates electricity through turbogenerators.
The BNDES financing will also be used to expand and modernize the Boa Vista Mill, whose annual production of yeast, used in animal feed, will be increased from 1,000 tons to 8,500 tons.
São Martinho has also planned investments in innovation projects to streamline production processes at the Santa Cruz mill in Américo Brasiliense and the Iracema mill in Iracemápolis, both in São Paulo.
According to Fabio Venturelli, CEO of São Martinho, “these investments will be fundamental for the growth and future of São Martinho over the next decade by aligning innovation, productivity and best sustainable practices at all of our industrial units. We are optimistic and prepared for a new phase in the sugar and ethanol sector, using corn as the new raw material to expand our ethanol production in the Midwest region of Brazil and also to contribute to the supply of more renewable energy throughout the country.”
The R$941.6 million financing line corresponds to 79% of the total investment of R$1.2 billion planned by the Company to implement all of its field projects. São Martinho’s initiatives are aligned with BNDES’ focus on financing projects that meet the ESG (Environment, Social and Governance) criteria.
The projects, already approved by the Board of Directors of the Company, should be fully implemented by 2026, generating more than 1,300 indirect and 200 direct jobs and income in the interior regions of São Paulo and Goiás.
Boa Vista Mill in Quirinópolis, Goiás