Press Releases

Pioneer of second-generation biofuel production in the Southern Hemisphere, with a plant in Alagoas, GranBio wants to become a world reference in innovation in the conversion of biomass into chemicals and biofuels.

São Paulo, May 23, 2012 – GraalBio, the Graal Group's industrial biotechnology solutions company, announces its investment plan in Brazil for the production of second-generation ethanol and biochemicals from the conversion of biomass. Projects include:
- Construction of a pioneer commercial cellulosic ethanol plant in Brazil, with a complementary role to that of the first generation plants;
- Installation of an Experimental Agricultural Station for the development of new sugarcane varieties with high fiber content;
- Construction of a Pilot Plant for the development of biochemical routes;
- Implementation of a Research Center for the development of Genetically Modified Organisms for the production of Biochemicals and Biofuels;
GraalBio's first commercial-scale Cellulosic Ethanol plant will be the first in the Southern Hemisphere and is among the first ever announced in the world.
The first Brazilian cellulosic ethanol unit will be built in Alagoas and will initially use sugarcane bagasse and straw as raw materials, which will be replaced over time by energy cane. The biorefinery will be able to work in cooperation with a first generation plant located in the State. The Company understands that the associative model is an option because there is complementarity of operational efficiency with first generation plants, with synergy gains for both parties. With an investment of R$ 300 million, the plant will have a nominal production capacity of 82 million liters of ethanol.

Sugarcane bagasse and straw offer the potential to expand national ethanol production at the current installed capacity by more than 35%, presenting themselves as a potential solution to the annual deficit of 1 billion liters. All this without additional investments in land or competition with food production. GraalBio envisions a clean and economically viable solution to maximize the productivity and competitiveness of Brazilian ethanol.

Brazil offers the best conditions for the development and production of biomass, which places the country as a potential candidate to lead the next biotechnological revolution that is emerging in the coming years, based on the direct conversion of cellulose into industrial sugar, biochemicals and advanced biofuels, starting with second-generation ethanol.
GraalBio believes it has the best environment to lead this race. The fact that it is a pioneer in the generation of cellulosic ethanol on an industrial scale, anticipating the forecasts of the industry itself, reflects the Company's view that the second 'industrial revolution' necessarily involves the advancement of biotechnology linked to genetics. This thinking is being incorporated into the business, based on an innovative and unprecedented technological platform.