The National Bank for Economic and Social Development (BNDES) has approved R$500 million in financing for FS, one of Brazil’s largest ethanol producers, to help expand its production capacity as part of its strategic growth plan focused on the state of Mato Grosso. FS, which already operates ethanol production units in Lucas do Rio Verde, Sorriso, and Primavera do Leste, will use the funding to establish a new facility in Querência, located in the northeastern region of Mato Grosso.
In addition to producing ethanol from corn, FS utilizes advanced technology for the production of Dried Distillers Grains (DDG), a high-nutritional animal feed product designed for cattle, pigs, poultry, fish, and pets. The company also produces corn oil and generates bioelectricity from renewable biomass, further enhancing its contributions to Brazil’s energy transition and sustainable agricultural practices.
“This funding supports our efforts to expand production capacity while also aligning with our goals of deleveraging and optimizing our capital structure,” said FS CEO Rafael Abud. “Once we complete this financial adjustment, we will begin phase one of the construction in Querência. The region is known for its robust corn production capacity and great growth potential, making it an ideal location for structuring a logistics strategy to distribute our products across Mato Grosso and to northern and northeastern states,” he added.
The financing from BNDES is part of a broader alignment with national development initiatives, including the New Growth Acceleration Program (PAC), New Industry Brazil, and President Lula’s Ecological Transformation Plan. BNDES President Aloizio Mercadante emphasized that these initiatives are driving improvements in infrastructure, accelerating the energy transition, and promoting decarbonization and neo-industrialization. “This project exemplifies the synergy of these public policies and highlights the critical role of BNDES as a key agent of credit for Brazil’s development,” Mercadante said.
José Luís Gordon, BNDES Director of Productive Development, Innovation, and Foreign Trade, underscored the importance of corn ethanol production in ensuring Brazil’s ethanol supply, which reached nearly 6 billion liters in 2023, representing about 20% of the country’s total production. “Decarbonization is a cornerstone of Brazil’s Mais Produção Plan and offers vast potential in the biofuels sector. This strategic differentiator positions Brazil at the forefront of the global energy transition, and companies can leverage the New Climate Fund to advance green industry and technology in support of a just ecological transition,” Gordon explained.
The Querência project not only expands FS’s production capabilities but also aligns with Brazil’s goals of reducing greenhouse gas emissions, fostering renewable energy use, and promoting sustainable agricultural practices. With this financing, FS continues to contribute to the nation’s decarbonization efforts while reinforcing its position as a leader in the ethanol and biofuels sector.