Brazil's Grupo potencial invests $392 million into corn ethanol plant Parana state
The Vice President of Brazil, Carlos Eduardo Hammerschmidt, announced that Grupo Potencial would invest 2 billion Reais ($392.9m) in the construction of a corn-ethanol plant in Lapa (Parana State), as part a plan to create the largest biofuels facility on earth.
The group has already advanced in its construction of a soybean crushing plant at the site. It is expected to be finished in the first half 2026.
Hammerschmidt, in an interview on Monday, said that the plant would supply raw materials to Potencial’s expanding biodiesel facility. Future plans also include building a sustainable aircraft fuel (SAF).
Hammerschmidt is a co-owner and co-owner at the family-run business.
The plant will need 1.2 million tons of corn per year, which is equivalent to 6% the output of Parana. Brazil's second largest corn producer is expected to harvest 20 million tons of corn in 2024/25.
Hammerschmidt stated that construction of the ethanol facility is expected to start in 2026 using company funds and could be completed as early as 2027.
The corn ethanol production is expected to increase by more than 30% between 2024 and 2025 in the center-south region of Brazil, due to a combination of rising fuel demand, and a new law, in effect since August 1, which requires that gasoline contain 30% anhydrous alcohol.
Hammerschmidt said that Potencial's annual production capacity will increase from 900 millions liters to 1,62 billion liters once the expansion of the biodiesel facility is complete by the end 2026.
He said that the soybean crusher at Lapa would be able process 1.2 millions tons of soybeans per year.
The investment in the ethanol plant is part of a larger strategy, which includes the building of two pipelines - one for ethanol and another for biodiesel - connecting the nearby Araucaria city to the Lapa Complex. This could potentially serve other cities.
Hammerschmidt stated that the company plans to invest 200 millions reais into pipelines.
Hammerschmidt noted that the complex is located near an oil refinery owned by Petrobras in Parana.
(source: Reuters)
