Feb 8, 2021

 The Brazilian Development Bank (BNDES) approved two loans for the production of biogas in the interior of the states of Goiás and Paraná. Together, they will avoid the emission of 154 tons of polluting gases, equivalent to 1,076 trees planted. Loans of R$ 13.3 million will be granted to Albioma Codora Energia, the second cogeneration plant of the sugar cane producer group Albioma, in Goiás, and R$ 10.1 million to Cooperativa Agroindustrial Consolata (Copacol), in Paraná. Most of the support from BNDES (about 98% of the total directed to the two companies) will be financed by funds from the Climate Fund – Renewable Energies subprogram, which has facilitated conditions for the implementation of this kind of project.

With them, BNDES reaffirms its commitment to the segment that, in addition to expanding the supply of energy from alternative sources, avoids the disposal of polluting material in nature and reduces the emission of gases that cause the greenhouse effect. Financing contributes to environmental preservation, has a positive impact on the Brazilian energy matrix and promotes alignment with the National Policy on Climate Change, with the United Nations Sustainable Development Goal (specially SDG 7) and with the environmental, social and governance (ESG) agenda.

The operation with Albioma Codora Energia will enable the implementation of a biogas production line from vinasse (cane residue) in Goianésia (state of Goiás). The loan to Copacol will enable the construction of a biogas thermoelectric plant based on waste generated from pig farming, at a company unit in the city of Jesuítas (state of Paraná). The operations are included in the recent support from BNDES to Geo Elétrica Tamboara, also in Paraná, which took place on the same model.

“The support of BNDES in the process of decarbonizing the Brazilian economy through our agribusiness is increasingly going to finance and structure projects like these. By generating renewable energy from agroindustrial waste, an environmental problem is converted into an energy solution, in line with the Bank’s agenda and with Brazil’s sustainable development,” says Mauro Mattoso, head of the Agro-food and Biofuels Complex Department at BNDES.

Greater energy generation – Albioma’s investment will expand the plant’s biogas production by 8.7%, reaching 195 GWh. Approximately 17 GWh (enough volume to supply the need for 8,500 homes) can be distributed to the interconnected energy system, increasing national energy security. Part of the energy may be directed to the Jalles Machado plant, which will supply the raw material.

In the case of Albioma, the total investment of R$ 16.9 million, with financing of R$ 13.3 million by BNDES, will enable the processing of 1.09 million cubic meters of vinasse per year (about 1.25 million tons). Of the R$ 13.3 million, R$ 12.74 million are from the Climate Fund and R$ 600,000 from the Finem Direto line. The main applications of the funds will be in civil works in installations and purchase of national machines and equipment. With the project, “Albioma and Jalles Machado reinforce innovation and sustainability with energy generation through vinasse biogas,” says Christiano Forman, CEO of Albioma Codora.

Cost reduction – In Paraná, after the implementation of the project, Copacol will generate energy for its facilities, in addition to providing a useful destination for highly polluting waste, reducing electricity consumption costs and reducing the environmental impact of the unit. The initiative will also have the indirect effect of mitigating pressure on the national electricity grid, as it will decrease the unit’s external demand.

“The preservation of the environment is maintained in all of our activities, from the property to the final product. We are always looking for innovative strategies that guarantee everyone’s well-being. We are very pleased to have BNDES in this project. We are going to give the waste a correct destination, produce clean electric energy, providing even more sustainability to our cooperative,” says Valter Pitol, CEO of Copacol.

With a total investment of R$ 12.7 million, all from the Clima Fund, the project will have a generation capacity of 1 MW and a processing capacity of 5,600 cubic meters per year. Most of the investment will go towards the acquisition of national machinery and equipment.

Technology – Biogas is a type of fuel generated from the biodigestion process made by fermenting bacteria in organic material, such as waste. The generation from vinasse is still recent and contributes to the diversification of the energy matrix derived from renewable sources. In addition to the ability to generate electricity, purified biogas can be used in vehicles as a substitute for diesel (fossil fuel). The substitution of fossil fuels such as diesel oil, in the agro-industrial production process, generates an additional reduction in greenhouse gas emissions. The result can be a practically neutral or even negative carbon footprint.

About BNDES – Founded in 1952 and currently linked to the Ministry of Economy, BNDES is the main instrument of the Federal Government to promote long-term investments in the Brazilian economy. Its actions focus on the socioenvironmental and economic impact in Brazil. BNDES offers special conditions for micro-, small- and medium-sized enterprises, as well as social investment lines, directed at education and health, family agriculture, sanitation and urban transport. In crisis situations, the Bank acts in an anticyclical manner and assists in the formulation of solutions for the resumption of economic growth.

About the Climate Fund – The Program applies the portion of repayable funds from the National Fund on Climate Change, or Climate Fund, created by Law Nº 12,114 on September 12^th, 2009, regulated by Decree Nº. 7,343, of October 26^th, 2010, and currently governed by Decree Nº 10,143, of November 28^th, 2019. Linked to the Ministry of the Environment, the program aims to guarantee funds to support studies and finance projects that aim to mitigate climate change. It is also available for other types of projects, such as urban mobility, sustainable cities, solid waste and native forests. More information about the Climate Fund is available here.

About Albioma – Founded in 2015, Albioma Codora Energia is a joint venture between Albioma Participações do Brasil (65%) and Jalles Machado (35%). Codora Energia was created in 2011 by Jalles Machado to produce electricity and steam for the group’s sugar mill. In 2015, Albioma acquired control of the unit after winning the 2015 A-5 auction, providing today approximately 178 GWh per year to the interconnected power system.

About Copacol – Created in 1963 in the then municipality of Cafelândia (state of Paraná), Copacol was dedicated to supplying energy to farmers and processing cereals in the early years. It is currently one of the main cooperatives in the country, operating in segments such as agriculture, feed and supermarkets.