Brazil launches its first wheat-based ethanol plant

The Brazilian National Agency for Petroleum, Natural Gas and Biofuels (ANP) has issued a permit to launch the country's first wheat-based ethanol plant. The plant is located in the municipality of Santiago, Rio Grande do Sul state. This is reported by Brasil 247, a partner of TV BRICS.

During the initial phase, the plant will be capable of processing around 100 tonnes of wheat per day, with projected annual production reaching up to 12 million litres of hydrated ethanol. Construction investments totalled approximately US$18.6 million.

Experts note that by 2027, the plant's capacity is expected to be increased to 45-50 million litres of ethanol per year. Approximately US$93 million of additional investment may be allocated for these purposes.

The project became possible after the company obtained a state operating licence from the government of Rio Grande do Sul in November last year. It is noted that the launch of the plant expands the list of agricultural crops used in Brazil for biofuel production.

Brasil 247 also reported that financing for the biofuel sector in Brazil has reached a record level. In 2025, the Brazilian Development Bank (BNDES) approved loans worth US$1.1 billion for bioenergy projects – the highest amount since 2010. Priority areas include ethanol production from corn and wheat, as well as biomethane projects.

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