European firm to invest €46 million in Brazil's biodiesel industry under "social fuel" policy
The Brazilian government's biofuels policies contain interesting provisions which say that if producers source their feedstocks from small farmers, they get tax exemptions. It seems like most large investors find the propositions so appealing that they opt for this "social fuel" seal.
The system is aimed at strengthening the social sustainability of agricultural production - a top priority for the Brazilian government. According to Brazilian officials, large-scale biofuel production can act as a lever to reduce rural poverty, provided small farmers are made an integral part of the rapidly evolving industry (earlier post). By investing in energy crops, for which they obtain secure supply contracts, Brazil's countless smallholders can raise their incomes and diversify their crop portfolio, thus reducing the risks they otherwise often face when relying on a single crop. The social sustainability policy is seen as a strategy not only to fight rural poverty but to slow down mass migration from the country-side to the mega-cities (mega-slums), which is a consequence of it.
Brazil's socially framed ethanol expansion program is expected to bring up to 3.6 million jobs by 2010 (earlier post), whereas its new biodiesel program might equal that amount (President Lula's take on the program).
One amongst the many companies stepping into the "social fuel" system, is the Malta-based Agrenco Group who will be investing 130 million Brazilian reals (€46/US$60.4 million) in an oilseed complex in the state of Mato Grosso, one of Brazil's poorest regions.
In a statement issued by Finacom, the financial arm of the group, it was revealed that the complex includes a crushing and biodiesel plant and a biomass power plant. The complex is part of Agrenco’s larger plan to invest a total of €84 million (US$110 million) in three biodiesel and crushing plants in Brazil. The company intends to build other hubs in Parana and Mato Grosso do Sul states. Altogether, they will produce 380,000 tons of biodiesel:
biodiesel :: biomass :: bioenergy :: biofuels :: energy :: sustainability :: rural poverty :: poverty alleviation :: internal migration :: social sustainability :: Brazil ::
The announcement was made in the capital of Mato Grosso, Cuiabá city, by Agrenco Group CEO Antonio Iafelice at a meeting with Mato Grosso state governor Blairo Maggi. Francisco Ramos, shareholder of the Agrenco Group, and José Marcos Lorenzetti, director of Agrenco Bioenergia, also took part in the meeting.
The biodiesel plants will apply for the “social fuel” seal granted by the federal government, and therefore be eligible for tax-exemption, as the oilseed will be supplied by small-scale farmers. The plants use a multi-seed technology, meaning they can crush and produce biodiesel from oilseed such as soybeans, jatropha, castor, and sunflower.
Part of Agrenco’s biodiesel production will be used for its own fleet of 3,000 trucks and lorries. Another portion will be delivered to farmers and the remainder will be available to the external market.
The system is aimed at strengthening the social sustainability of agricultural production - a top priority for the Brazilian government. According to Brazilian officials, large-scale biofuel production can act as a lever to reduce rural poverty, provided small farmers are made an integral part of the rapidly evolving industry (earlier post). By investing in energy crops, for which they obtain secure supply contracts, Brazil's countless smallholders can raise their incomes and diversify their crop portfolio, thus reducing the risks they otherwise often face when relying on a single crop. The social sustainability policy is seen as a strategy not only to fight rural poverty but to slow down mass migration from the country-side to the mega-cities (mega-slums), which is a consequence of it.
Brazil's socially framed ethanol expansion program is expected to bring up to 3.6 million jobs by 2010 (earlier post), whereas its new biodiesel program might equal that amount (President Lula's take on the program).
One amongst the many companies stepping into the "social fuel" system, is the Malta-based Agrenco Group who will be investing 130 million Brazilian reals (€46/US$60.4 million) in an oilseed complex in the state of Mato Grosso, one of Brazil's poorest regions.
In a statement issued by Finacom, the financial arm of the group, it was revealed that the complex includes a crushing and biodiesel plant and a biomass power plant. The complex is part of Agrenco’s larger plan to invest a total of €84 million (US$110 million) in three biodiesel and crushing plants in Brazil. The company intends to build other hubs in Parana and Mato Grosso do Sul states. Altogether, they will produce 380,000 tons of biodiesel:
biodiesel :: biomass :: bioenergy :: biofuels :: energy :: sustainability :: rural poverty :: poverty alleviation :: internal migration :: social sustainability :: Brazil ::
The announcement was made in the capital of Mato Grosso, Cuiabá city, by Agrenco Group CEO Antonio Iafelice at a meeting with Mato Grosso state governor Blairo Maggi. Francisco Ramos, shareholder of the Agrenco Group, and José Marcos Lorenzetti, director of Agrenco Bioenergia, also took part in the meeting.
The biodiesel plants will apply for the “social fuel” seal granted by the federal government, and therefore be eligible for tax-exemption, as the oilseed will be supplied by small-scale farmers. The plants use a multi-seed technology, meaning they can crush and produce biodiesel from oilseed such as soybeans, jatropha, castor, and sunflower.
Part of Agrenco’s biodiesel production will be used for its own fleet of 3,000 trucks and lorries. Another portion will be delivered to farmers and the remainder will be available to the external market.
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