Algeria's food processing, mining and steel company Cevital plans to build a corn-based ethanol plant in Brazil.
Cevital's representatives met with Mato Grosso Governor Pedro Taques on Tuesday to discuss their plans and negotiate terms of the investment, including environmental licensing and tax incentives, the source said. Ethanol is normally produced from sugarcane in Brazil. But some ethanol producers have recently been drawn to corn's low cost and large availability in some regions such as the country's centre-west.
Cevital said the corn-based ethanol plant would be the first project of a larger plan that includes a soy crushing installation and a feed plant. It said total investments are forecast at $750 million. Corn produced in Mato Grosso is among the cheapest in the world,but since the area is relatively far from ports transportation costs usually make the product less competitive in external markets. According to the source, Paulo Hegg, Cevital's representative in Brazil, said the Algerian company currently buys around $1.5 billion worth of raw materials from Brazil every year. PetrolWorld 171215