The National Bank for Economic and Social Development (BNDES) has contracted financing worth R$157 million (€29.3 million) for the construction of a biomethane plant in Triunfo, Rio Grande do Sul, reported .
Of this amount, R$79.8 million (€14.7 million) comes from the Climate Fund Program.
The unit is expected to have a production capacity of 13 million cubic meters of biomethane per year and avoid the emission of more than 14,000 tons of CO2 equivalent/year into the atmosphere.
The total investment planned for the unit, taking into account sources of funding other than the BNDES, is R$196 million (€36.6 million).
Biomethane production will come from organic inputs from industries in the region, from sectors such as meatpacking, pulp and paper and wastewater treatment, among others.
The gas will be sold to the State Gas Company of Rio Grande do Sul - Sulgás, which will distribute it throughout the state via pipeline.
The BNDES' support for Bioo Holding S.A.'s venture was structured as Project Finance, a model in which the guarantees are the assets themselves and the cash flow from the venture.
According to the director of infrastructure, energy transition and climate change at the BNDES, Luciana Costa: "The operation is part of the Bank's effort to expand its operations in the biomethane sector, using resources from the Climate Fund".
Brazil receives R$157 million investment for biomethane plant
