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Brazil launches first corn-only ethanol plant – Business News

Corn mill: Temer and Maggi (left) officiating at the launch of Brazil’s first ethanol mill that is entirely based on corn in Lucas do Rio Verde, Mato Grosso state. — Reuters

SAO PAULO: With a record corn crop in the silos and Brazil’s president on hand, FS Bioenergia on Friday inaugurated the country’s first ethanol plant processing only corn in the heartland of the South American grains powerhouse.

President Michel Temer was joined at the inauguration by Agriculture Minister Blairo Maggi, who pledged the government’s support for corn-based ethanol – an innovation in a country that has long made ethanol more efficiently from sugarcane.

Privately owned FS Bioenergia said the plant will produce about 240 million litresof ethanol from corn each year, along with 6,200 tonnes of corn oil and 60,000 MW of power.

The dignitaries on hand to celebrate the new plant in the state of Mato Grosso, Brazil’s top grains producer, underscores how eager the country is to find new outlets for its surging corn production.

“If we had 10 plants like this one, we would be able to absorb about 6 million tonnes of corn from the market,” said Maggi, who lamented the scarce demand for Brazil’s bumper crop on the visit to his home state. “Current prices do not even cover production costs.”

A second annual corn crop, planted after soybeans are harvested, has made Brazil the world’s second-largest exporter of the cereal and a major competitor to the United States in global markets.

The second corn harvest represents about 68% of Brazil’s total corn crop. Mato Grosso, where production has grown exponentially over the years, accounts for almost a third of the country’s total corn output, according to growers association Aprosoja.

FS Bioenergia is a joint venture between Brazil’s Fiagril Partici-pacoes and US-based Summit Agricultural Group.

Producers of ethanol say it is much more efficient to use cane than corn, in terms of energy used in the process. But…

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