ITOCHU and Bunge JV begins production and sales of ethanol in Brazil; plans to increase capacity by 76%
ITOCHU and Bunge Limited have started production and sales of bioethanol in a joint venture company, Pedro Afonso Acucar e Bioenergia S.A. in Tocantins, Northern Brazil.
Through JB BioEnergy (Tokyo), a wholly owned subsidiary, ITOCHU holds 20% of the shares in the joint venture and Bunge owns the rest. ITOCHU is also establishing bioethanol production and sales operations with Bunge in Minas Gerais, Southeastern Brazil, at the same investment rate, and the total investment in the two projects is approximately US$800 million.
Pedro Afonso began constructing its first plant in January 2009, which was completed in July 2010. After the successful completion of trial operations, the plant began operating at almost full capacity in May 2011. Although the annual processing capacity of sugar cane at the Pedro Afonso mill is currently 2.5 million tons per year, plans are in place to expand it to 4.4 million tons.