In Brazil, biodiesel major Be8 S.A., a wholly owned subsidiary of biofuel major ECB Group, has announced the construction start of a new cereal grain ethanol plant in Passo Fundo, the first large-scale cereal ethanol plant in the State of Rio Grande do Sul (RS), and the first in the country that will produce vital gluten.
Scheduled for completion in 2026, the plant will have an annual production capacity of 220 million liters of ethanol. The production will be flexible – fuel ethanol (anhydrous ethanol that can be blended with gasoline) or hydrous ethanol for consumption.
Today, we begin to make a dream come true with this Be8 industrial project in Passo Fundo, which will bring development and opportunity to our region and another green energy solution for the country’s energy transition, remarked Erasmo Carlos Battistella, President of Be8, during monitoring of activities in the construction area.
Be8 will also market the estimated 155,000 tonnes per annum of bran from the processing of cereals, aka Distiller’s Dried Grains with Solubles (DDGS), obtained immediately after the fermentation process, and is an important co-product used in animal feed.
The innovative nature of this project represents a new chapter for agribusiness in Rio Grande do Sul, adding value to the entire production chain, with the optimization of the use of our production areas in winter crops, with genetic development of wheat, to meet the demands in food and clean energy markets, said Leandro Luiz Zat, Vice President of Operations.
Displace imported gluten
The production of vital gluten, a powdered protein concentrate obtained from cereal flour, will also be integrated into the project.
Currently, all vital gluten consumed in Brazil is imported.
With this innovative project, Be8 will fully supply the Brazilian market, with the capacity to serve Mercosur as well. The unit will produce 35,000 tonnes per annum of vital gluten.
I have said that it is not a factory, but a manufacturing park that will house four factories and will produce human food (vital gluten), renewable energy (ethanol) and animal food (bran) with a lot of innovation, which puts Passo Fundo and Rio Grande do Sul in the spotlight in this area, Erasmo Carlos Battistella said.
BNDES funding
The National Bank for Economic and Social Development (BNDES) approved financing of R$729.7 million (≈ US$132.6 million) for the construction of the factory.
Of the total, R$500 million (≈ US$90.8 million) comes from the BNDES More Innovation Program. The adaptation of Be8’s investment to the Program was due to the project’s pioneering plant for biofuel from raw materials that had not yet been used for this purpose in Brazil, such as wheat and triticale, among others.
The movement we observed here on the factory site is the result of a long financial strategy that involved financing from the National Bank for Economic and Social Development (BNDES), which approved the amount of R$729.7 million for the construction of the factory, making this investment a reality, explained Tulio Abi-Saber, VP of Finance.
Stimulate the regional economy
Occupying an 80-hectare site, the new ethanol plant will generate more than 800 jobs during the implementation phase of the project, giving preference to hiring local labor, promoting training, and specialized qualifications for the maintenance and operation of the unit.
Upon completion, approximately 175 direct jobs will be generated in the operation of the plant.
Be8 is working with educational institutions, technical training, and professional improvement courses to train qualified professionals for the new factory and other industrial processes.
The company will also prioritize the direct and indirect hiring of companies established in Passo Fundo to make investments.
As in the entire history of Be8 in Passo Fundo, the company’s growth is directly reflected in gains in the local community and benefits in the development of the regional economy and job creation, said Erasmo Carlos Battistella.
State-of-the-art plant
In April 2024, Be8 received the Environmental Installation License (LI), by which the environmental agency licenses the location, installation, expansion, and operation of enterprises and activities that use environmental resources, and the release of the Installation License, which allows the start of the works.
Regional company MATT Construtora has been selected for site preparation works, including the earthmoving activities.
Headquartered in Vila Maria (RS), the company is part of the MPX Group that provides earthmoving, drainage, asphalt paving, drilling, and blasting in rock and bridge construction services, and has eight asphalt plants and quarries distributed in Rio Grande do Sul and other states.
Be8 has signed an ethanol plant process, design, and engineering license agreement with India-headed Praj Industries Ltd (Praj), a global provider of bio-based technologies, engineering, and modularized solutions. , with projects around the world.
According to Be8, one of the main differentials of Praj’s solution is the energy efficiency of the project, capable of guaranteeing a quality product at the lowest operating cost, and the experience in cereal-based ethanol production.
The plant will be energy self-sufficient with a biomass cogeneration plant, with excess power made available to the municipality’s distribution grid.
There will be no discharge of liquid effluents, which will be used to produce steam in the production process.
