Brazil’s Grupo Potencial to Invest $392 Million in Corn Ethanol Plant in Parana State

By Roberto Samora

SAO PAULO, Aug 5 (Reuters) – Brazil’s Grupo Potencial will invest 2 billion reais ($392.9 million) to build a corn ethanol plant in Lapa, Parana state, as part of a plan to develop the world’s largest biofuels complex, Vice President Carlos Eduardo Hammerschmidt said.

The group is already in advanced stages of constructing a soybean crushing facility at the site, which is expected to be completed in the first half of 2026.

The plant will supply raw material to Potencial’s expanding biodiesel factory, Hammerschmidt said in an interview with Reuters on Monday, while future plans include building a sustainable aviation fuel (SAF) facility.

“Our goal is to build the largest biofuels complex in the world,” said Hammerschmidt, a co-owner of the family-run company.

The corn ethanol plant will require 1.2 million metric tons of corn each year, equivalent to 6% of Parana’s output. The state, Brazil’s second-largest corn producer, is forecast to harvest a record 20 million tons in the 2024/25 season.

Construction of the ethanol plant is scheduled to begin in 2026, using the company’s own funds, and may be completed by late 2027, Hammerschmidt said.

Corn ethanol production in Brazil’s center-south region is expected to grow more than 30% in 2024/25, driven by rising fuel demand and a new rule, effective since the start of August, which mandates that gasoline must include 30% anhydrous ethanol.

Once the biodiesel plant expansion is completed by the end of 2026, Potencial will boost its annual production capacity from 900 million liters to 1.62 billion liters, Hammerschmidt added.

The soybean crusher in Lapa will be able to process 1.2 million tons per year, he said.

The ethanol plant investment is part of a broader strategy that includes building two pipelines — one for ethanol and one for biodiesel — connecting the nearby city of Araucaria to the Lapa complex, with potential to serve other cities.

The company expects to invest 200 million reais in the pipelines, Hammerschmidt said.

“We’ll deliver both biodiesel and ethanol directly to fuel distribution hubs,” Hammerschmidt said, noting the complex’s proximity to an oil refinery in Parana owned by state energy giant, Petrobras PETR4.SA.

($1 = 5.5090 Brazilian reais)

(Reporting by Roberto Samora; Writing by Oliver Griffin; Editing by Daniel Wallis)