Notícias
02/12/2008
Investments in alcohol plants remain steady
Despite speculation at the end of last year that there would be a cut back in investments in the sugar-alcohol industry due to the falling prices of alcohol and sugar, groups such as Comanche Clean Energy and Santelisa Vale have gone forward with their plans to make short and mid-term investments in the country.
The Comanche Clean Energy Group, run mainly using American equity investment funds is a newcomer to the Brazilian market, maintaining plans of investing over R$ 175 million in three recently acquired plants by 2010. The target for turnover, for 2008, is to reach R$ 140 million, for 2009, around R$ 270 million, and in 2010, the group hopes to reach R$ 350 million with their operations in Brazil.
“Investments will be made to enlarge and modernize the plants and improve crops,” says João Pesciotto, Vice President of new businesses at the group. “One of the reasons to continue investing is the fact that, in the mid-term, the supply of alcohol should grow more slowly than demand,” he stated.
At the beginning of April of last year, Comanche acquired two ethanol distilleries located in inland São Paulo state, in the cities of Canitar and Tatuí, in addition to a biodiesel plant in the state of Bahia.
The two São Paulo units produce anhydrous and hydrate alcohol and should receive a little over R$ 150 million of the planned investment.
According to Pesciotto, the investments made in Canitar will increase the current mill capacity from 250 thousand tons/year to 1.2 million tons/year in 2009. By 2010, the distillery should reach a capacity of 2.2 million tons/year. In Tatuí, according to the company’s plans, the current capacity of 500 thousand tons/year should increase to 1.4 million tons/year for next year.
The other R$ 25 million invested by the group will be used for the biodiesel plant in Bahia. Around half of the money will go to sunflower, castor seed, and jatropha, while the rest of the investment will go towards modernizing and enlarging the industrial part of the plant. “Jatropha is a very promising plant for biodiesel production. We still need to verify its production per hectare,” said the executive. The plant, which today has an installed capacity of 40 million liters of biodiesel per year, should reach around 100 million liters/year in 2009.
The group also has another project which is not yet part of their turnover forecasts: construction of a fuel cluster to produce biodiesel and alcohol in Maranhão.
For now, there is a protocol of intentions, which was signed together with the government of Maranhão, and the company is looking for an ideal location to set up installations and plant crops. According to Pesciotto, the company intends to invest R$ 300 million. Construction of the plant is planned to start in 2009 and should be in full swing in 2011, with capacity to produce around 300 million liters of alcohol and 100 million liters of biodiesel per year. Another example of firm investments in the sector is the Santelisa Vale group. Together with FIP, the Sugar and Alcohol Investment and Participation Fund, Santelisa Vale is going to open four companies for CNAA, the National Sugar and Alcohol Company. Investments total R$ 2 billion.
Two of the units are already in construction in the states of Minas Gerais and Goiás: Central Itumbiara Bioenergia e Alimentos Ltda. (Itumbiara Bioenergy and Food) in Goiás and Ituiutaba Bioenergia Ltda. (Ituiutaba Bioenergy) in Minas Gerais. Both should be up and running by the second semester of this year. In 2009, the Campina Verde Bioenergia Ltda. (Campina Verde Bioenergy) and Platina Bioenergia S.A. (Platina Bioenergy) units should be up and running in Minas Gerais. The four new companies will have an initial industrial capacity for crushing 2.5 million tons of sugarcane per harvest. The maximum capacity could be increased to 5 million, which would mean a total of 20 million when they are at full power.
Expectations Expectations are for a better year for alcohol as well as sugar prices, according to Anísio Tormena, President of Alcopar, the Alcohol and Sugar Producers Association of Paraná.
“It’s hard to define, but we expect improved prices for the next harvest. One of the reasons is that alcohol exports to the American market may pick up, even in the current situation,” says Tormena. “Moreover, around 2.5 million flex fuel vehicles are expected to enter the market in the next two years, mainly in Southeastern Brazil. Alcohol is consolidating on the national and foreign market,” he adds.
Tormena also notes that with some recovery of sugar prices, many plants are expected to change their product mix, cutting back a little on the supply of alcohol. “There was a recovery of food prices in general on the foreign market,” he states. “We didn’t expect a hike in prices, but there will be some recovery,” he sums up.
The Comanche Clean Energy Group, run mainly using American equity investment funds is a newcomer to the Brazilian market, maintaining plans of investing over R$ 175 million in three recently acquired plants by 2010. The target for turnover, for 2008, is to reach R$ 140 million, for 2009, around R$ 270 million, and in 2010, the group hopes to reach R$ 350 million with their operations in Brazil.
“Investments will be made to enlarge and modernize the plants and improve crops,” says João Pesciotto, Vice President of new businesses at the group. “One of the reasons to continue investing is the fact that, in the mid-term, the supply of alcohol should grow more slowly than demand,” he stated.
At the beginning of April of last year, Comanche acquired two ethanol distilleries located in inland São Paulo state, in the cities of Canitar and Tatuí, in addition to a biodiesel plant in the state of Bahia.
The two São Paulo units produce anhydrous and hydrate alcohol and should receive a little over R$ 150 million of the planned investment.
According to Pesciotto, the investments made in Canitar will increase the current mill capacity from 250 thousand tons/year to 1.2 million tons/year in 2009. By 2010, the distillery should reach a capacity of 2.2 million tons/year. In Tatuí, according to the company’s plans, the current capacity of 500 thousand tons/year should increase to 1.4 million tons/year for next year.
The other R$ 25 million invested by the group will be used for the biodiesel plant in Bahia. Around half of the money will go to sunflower, castor seed, and jatropha, while the rest of the investment will go towards modernizing and enlarging the industrial part of the plant. “Jatropha is a very promising plant for biodiesel production. We still need to verify its production per hectare,” said the executive. The plant, which today has an installed capacity of 40 million liters of biodiesel per year, should reach around 100 million liters/year in 2009.
The group also has another project which is not yet part of their turnover forecasts: construction of a fuel cluster to produce biodiesel and alcohol in Maranhão.
For now, there is a protocol of intentions, which was signed together with the government of Maranhão, and the company is looking for an ideal location to set up installations and plant crops. According to Pesciotto, the company intends to invest R$ 300 million. Construction of the plant is planned to start in 2009 and should be in full swing in 2011, with capacity to produce around 300 million liters of alcohol and 100 million liters of biodiesel per year. Another example of firm investments in the sector is the Santelisa Vale group. Together with FIP, the Sugar and Alcohol Investment and Participation Fund, Santelisa Vale is going to open four companies for CNAA, the National Sugar and Alcohol Company. Investments total R$ 2 billion.
Two of the units are already in construction in the states of Minas Gerais and Goiás: Central Itumbiara Bioenergia e Alimentos Ltda. (Itumbiara Bioenergy and Food) in Goiás and Ituiutaba Bioenergia Ltda. (Ituiutaba Bioenergy) in Minas Gerais. Both should be up and running by the second semester of this year. In 2009, the Campina Verde Bioenergia Ltda. (Campina Verde Bioenergy) and Platina Bioenergia S.A. (Platina Bioenergy) units should be up and running in Minas Gerais. The four new companies will have an initial industrial capacity for crushing 2.5 million tons of sugarcane per harvest. The maximum capacity could be increased to 5 million, which would mean a total of 20 million when they are at full power.
Expectations Expectations are for a better year for alcohol as well as sugar prices, according to Anísio Tormena, President of Alcopar, the Alcohol and Sugar Producers Association of Paraná.
“It’s hard to define, but we expect improved prices for the next harvest. One of the reasons is that alcohol exports to the American market may pick up, even in the current situation,” says Tormena. “Moreover, around 2.5 million flex fuel vehicles are expected to enter the market in the next two years, mainly in Southeastern Brazil. Alcohol is consolidating on the national and foreign market,” he adds.
Tormena also notes that with some recovery of sugar prices, many plants are expected to change their product mix, cutting back a little on the supply of alcohol. “There was a recovery of food prices in general on the foreign market,” he states. “We didn’t expect a hike in prices, but there will be some recovery,” he sums up.
