Inpasa Announces R$1.2 Billion Investment for New Ethanol Plant in Bahia
Inpasa, the largest corn ethanol producer in Brazil, has announced plans to invest R$1.2 billion in the construction of a new ethanol plant in Luís Eduardo Magalhães, Bahia. According to the company, the facility is set to be operational by 2026 and will have the capacity to process 1 million tons of grains annually, primarily corn and sorghum.
The new plant will have the capacity to produce 460 million liters of ethanol per year, along with 230,000 tons of DDGS (Distillers Dried Grains with Solubles), 23,000 tons of vegetable oil, and 200 GWh of electricity.
Inpasa estimates that the construction will create 2,500 jobs, and after the plant begins operations, it will generate 450 direct jobs. The project is also expected to involve around 200 direct suppliers and manage the transportation of over 10,000 loads.
With this addition, Inpasa will have six production facilities in Brazil and two in Paraguay. In 2023, the company processed 6 million tons of corn.
Tax Incentives
The Bahian government announced that the Inpasa plant will benefit from tax incentives, including a 75% presumed credit on the Tax on Circulation of Goods and Services (ICMS) for operations involving anhydrous ethanol (used as a gasoline additive), hydrated ethanol (sold at gas stations), DDGS (a corn ethanol byproduct used in animal feed), and various oils.
“The state has been successful in attracting companies that promote both job creation and sustainable development. Changes in legislation have enabled more investment in clean energy,” said Governor Jerônimo Rodrigues. Currently, Bahia imports 80% of its ethanol consumption, making this plant a significant step toward local energy production.
The tax incentives, published in the State Official Gazette (DOE) on September 11, also include exemptions on imported equipment and rate differentials for domestically sourced machinery.