ComBio Brazil expects revenues to reach $430 million as corn ethanol customers increase production

Commercial director Ricardo Blandy, Brazil's biggest supplier of renewable thermal power for industrial clients, said that ComBio expects its revenue to triple to?about $430 million in five years due to the growing demand from corn ethanol producers.

Blandy stated that there are?25 corn-ethanol plants in Brazil. Another 18 are currently under construction, and another 19 are still in the planning stages. Biofuel production is increasing, and biomass supply has become tighter.

Blandy stated that in states such as Mato Grosso - Brazil's largest corn ethanol producer - the availability of biomass to feed steam boilers is a major issue, even more important than corn supplies and biofuel costs.

He said that there are some areas where the biomass shortage is alarming. The rapid growth of the corn ethanol industry, and the limited biomass supply to generate energy were two factors that led Mato Grosso State prosecutors to investigate whether producers are using illegally deforested trees to feed their plants.

Blandy stated that ComBio has 10 clients in several industries but no corn ethanol producers. He expects this to change very soon.

He said that he had spoken to 30 of the largest producers or project developers working in the ethanol sector. "We are just a few weeks away from announcing our initial contracts," he added, without providing any details.

ComBio plans to plant eucalyptus on about 10,000 hectares (24,511 acres) of land in Mato Grosso over the next few years in order to meet future corn ethanol demand, he said.

ComBio offers investments in renewable energy generation and manages the operation of biomass-fired units. This can account for as much as 30% of the investment made by corn ethanol plants that cost between 1 billion reais and 1.5 billion reais.

According to him, while the industrial side of energy generation projects can cost between 150 and 300 million reais depending on their size, the biological assets could require another 300 million reais.

He said that ComBio would invest 600 million reais to cover both industrial and forestry capital expenditures. Reporting by Roberto Samora, Writing by Oliver Griffin, Editing by Chizu nomiyama

(source: Reuters)