By Brazil Stock Guide – Brazil’s development bank BNDES approved a 950 million-real ($190 million) financing package for Inpasa Agroindustrial SA to build a new ethanol plant in the state of Bahia, expanding the company’s footprint in the country’s biofuels sector.
According to a statement released by BNDES, the funding will support the construction of Inpasa’s sixth biorefinery in Brazil, to be located in the city of Luís Eduardo Magalhães. The facility will produce anhydrous and hydrous ethanol from corn, sorghum and other grains, reinforcing Brazil’s push to diversify feedstocks beyond sugarcane.
Of the total amount approved, 350 million reais will come from the government-backed Climate Fund, while 600 million reais will be provided through BNDES’s long-term FINEM credit line. The project is designed to process up to 1 million metric tons of corn per year.
Once fully operational, the plant is expected to produce about 498 million liters of ethanol annually, as well as 248,900 metric tons of distillers dried grains with solubles (DDGS), 24,862 tons of vegetable oil and 185 gigawatt-hours of electricity.
“The ethanol plant will have a significant impact on the local economy and will help Bahia move from being an importer to becoming an exporter of biofuels,” BNDES President Aloizio Mercadante said in a statement.
BNDES expects the new unit to reach full production capacity starting in 2027, strengthening Inpasa’s role in Brazil’s renewable energy and agribusiness markets.
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