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Algeria’s Cevital Plans Corn-Based Ethanol Plant in Mato Grosso, Brazil

The official news agency of the Brazilian state of Mato Grosso announced that the Algerian food processing, steel, and mining company, Cevital, is planning to build a corn-based ethanol plant in the state.

Although the possible capacity of the plant was not disclosed, Cevital said that the plant was only the first phase of a multi-project plan in the country that will include a soy crushing facility and a feed plant for a total investment of $750 million.

The bulk of ethanol produced in Brazil is made from sugarcane, however, because of the low cost of corn production and high availability in the country has been increasingly attracting the attention of producers despite the high cost of transporation transportation.

Cargill has established a joint venture with Brazil’s Usina Sao João for the construction of a corn-ethanol unit, and Usina Rio Verde Ltda is pursuing another in the state of Goias, reports Reuters.

Cevital’s is proposing to build its plant in the municipality of Vera, and company representatives have met with Pedro Taques, Governor of Mato Grosso to negotiate the terms of the investment, taxes, and licensing.

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