BNDES agrees $23m loan for biogas project in Brazil
Brazilian development bank BNDES has approved a loan of about BRL97.1 million ($23.4 million) to support a biogas project by local sugar and ethanol producing company Cocal Energia.
The financing will back the construction and installation of a biomethane and clean electricity generating plant at Cocal's Narandiba municipality unit, in Sao Paulo state.
BNDES' loan covers 69% of the total project investment of BRL139.7 million. About BRL30 million of the approved loan comes from the Climate Fund, which supports investments in local renewable energy and transmission projects.
The facility will use the waste generated during the production of ethanol and sugar, such as sugarcane straw, filter cake and vinasse.
Cocal Energia expects to produce 33 million cubic metres per year of biogas. It will use half for biomethane production and half for electricity generation. The biomethane will serve as fuel for Cocal's fleet of vehicles and for Petrobras-owned natural gas distributor Gas Brasiliano.
