The new partnership combines industrial assets of Grupo USJ in the state of Goias, which consist of the Sao Francisco mill and the Cachoeira Dourada mill in Quirinopolis, Brazil.
SJC Bioenergia will have an installed capacity to process about 7.5 million metric tons of sugarcane in 2013.
SJC Bioenergia is a combination of Cargill’s sugar and ethanol business and Grupo USJ’s expertise in the sugarcane industry.
The companies will own management interest of SJC Bioenergia on a 50-50 basis.
The new company will also inherit sugarcane supply agreements held with local farmers who supply its two mills.
In addition to sugar and ethanol, SJC Bioenergia will also generate electricity from sugarcane bagasse.
One third of the power, generated by the facility, will supply all company needs and two thirds will be sold to the national grid.
