The proposed bioethanol facility, which is the first commercial production plant in the country for converting sugar cane waste (bagasse) to cellulosic bioethanol, will primarily be used to power Flex-Fuel vehicles in the domestic market.
As per the agreed terms, TMO will establish, own and operate an advanced ethanol pilot plant with a capacity of about 10 million liter to convert bagasse to cellulosic bioethanol, which will be followed by the construction of a full-scale industrial plant.
The plant, located next to a sugar mill owned by Usina Santa Maria at Cerquilho in São Paulo state, is expected to be operational by the end of 2014.
TMO chief executive David Weaver said that the company has developed a process to convert waste to biofuels after a 10 year research.
Usina Santa Maria director and president José Pilon said, "Our friends and partners, particularly Mr. Edson Patto on our side and Rodolpho Koch, Theo Chapman and James Buchan from BB2E, have been fundamental in developing this opportunity into a contract.
"I believe this is a milestone for ethanol industry and I feel honored and privileged to be a part of this moment," added Pilon.
Brazil is the world’s leading market for ethanol fuels. About 65% of Flex-Fuel registered vehicles regularly use ethanol fuel, according to two separate research studies conducted in 2009. In São Paulo, usage increased to 93% of flex car owners.
