By Brazil Stock Guide – Brazil’s development bank BNDES approved R$356.5 million in financing for agribusiness company Dual Duarte Albuquerque Comércio e Indústria Ltda. to build a cottonseed protein facility and double biodiesel production capacity in Mato Grosso state, according to a statement released Monday (Nov. 9).
The financing package includes R$271.6 million for a pilot facility producing high-protein cottonseed concentrate for animal feed and R$84.9 million to expand an existing biodiesel plant in Pedra Preta. The investments are designed to increase the value of agricultural processing, support exports and expand renewable fuel production.
The larger financing operation, approved under the BNDES Mais Inovação program, will cover 100% of the investment required for the protein facility. The plant will manufacture cottonseed protein concentrate, or CPC, containing more than 60% protein.
Dual expects to export more than half of the facility’s production. According to BNDES, the project could enable Brazil’s first exports of cotton-based protein concentrate with protein content exceeding 60%.
The company estimates that construction will generate 525 direct and indirect jobs, with another 100 positions expected after completion, scheduled for December 2027.
New processing technology targets premium animal feed
The plant will use technology designed to reduce free gossypol, a naturally occurring compound in cotton plants that can limit the use of cottonseed derivatives in animal nutrition.
Lower gossypol concentrations, combined with improved digestibility and protein content above 60%, are expected to make the product suitable for higher-value animal feed markets.
The facility will be installed within Dual’s existing industrial complex in Pedra Preta, reducing construction and maintenance costs by using infrastructure already in place.
BNDES President Aloizio Mercadante said Brazil’s position among the world’s largest cotton producers creates opportunities for the technology to expand domestically and internationally.
“The fact that Brazil is one of the world’s largest cotton producers gives this technology significant growth potential in the domestic market, given CPC’s high added value, while also offering export potential,” Mercadante said.
He added that cottonseed oil from the industrial process will be used to manufacture biodiesel, supporting the Brazilian government’s efforts to reduce carbon emissions from the energy sector.
Biodiesel output set to double
The second financing operation will increase Dual’s biodiesel production capacity in Pedra Preta from 187.5 million liters to 375 million liters annually, representing a 100% expansion.
BNDES will provide R$84.9 million, including R$32.6 million through its Finem financing program and R$52.3 million from the Climate Fund, which supports investments associated with the transition to a low-carbon economy.
The approved financing represents 94.5% of the project’s total estimated investment of R$89.8 million.
Dual expects the expansion works to generate 40 indirect jobs.
The project will also increase the company’s daily crushing capacity for soybeans and cottonseed from 600 metric tons to 1,000 metric tons.
The additional processing capacity is intended to expand vegetable oil supplies for biodiesel manufacturing while lowering average processing costs.
The existing biodiesel operation uses soybean and cottonseed oils produced at Dual’s industrial facilities in Pedra Preta and Campo Novo do Parecis, both in Mato Grosso.
Expansion could cut annual emissions by 359,500 tons
BNDES estimates that the additional 187.5 million liters of annual biodiesel capacity could reduce greenhouse gas emissions by approximately 359,500 metric tons of carbon dioxide equivalent each year.
The estimate was calculated using a methodology developed by BNDES in partnership with Fundação Getulio Vargas, or FGV.
The figure represents the projected emissions-reduction potential associated with the expanded production capacity, rather than reductions already achieved.
The Climate Fund financing is part of a broader government mechanism administered by BNDES to support investments that contribute to Brazil’s transition toward a lower-carbon economy.
Dual operates five facilities in Brazil
Dual was founded 36 years ago in Limoeiro, Pernambuco state, and operates an integrated agribusiness focused primarily on processing and commercializing cottonseed derivatives.
The company also processes soybeans and produces soybean meal, degummed soybean oil and biodiesel.
Dual currently employs approximately 650 people across five locations, including its administrative headquarters in Limoeiro and four industrial facilities in Mato Grosso.
Three of those facilities are located in Campo Novo do Parecis, while the fourth operates in Pedra Preta, where both BNDES-financed projects will be implemented.
The company’s expansion combines higher-value agricultural processing with increased biofuel manufacturing capacity, while its new protein facility is scheduled to begin operations following completion in December 2027.
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