Jul 07, 2022

FS Agrisolutions to Expand Corn Ethanol Facility in Sorriso, Brazil

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

FS Agrisolutions continues to aggressively expand their corn ethanol production in the state of Mato Grosso. The company is already the largest corn ethanol producer in Brazil and one of Brazil's largest ethanol producers.

The company has petitioned the Environmental Minister for the State of Mato Grosso to allow the company to expand its corn ethanol facility in the city of Sorriso in central Mato Grosso. The facility is currently authorized to utilize 2.1 million tons of corn annually and the company is requesting that be increased to 3 million tons annually. If authorized, the facility would utilize approximately 7.6% of the state's corn production, which is estimated at 39 million tons.

The cost of the expansion is estimated at more than R$ 500 million and is expected to take one year to complete. Upon completion, the facility would produce 1.2 million cubic meters of ethanol, 60 thousand tons of corn oil, 1.8 million tons of DDGs, and 55 megawatts of energy.

FS Agrisolutions has two corn ethanol facilities up and running in the state and a third facility is under construction. Their first facility located in the city of Lucas do Rio Verde has already been expanded and now they want to expand their second facility in the city of Sorriso. The company has announced plans to build three more corn ethanol facilities in the state. When all six facilities are operational, they could process more than 10 million tons of corn annually.

In their petition to the state, the company emphasized how their facilities would add value to the state's corn production. If 10 million tons of corn were exported, the company estimates it would generate approximately R$ 2.7 billion in gross revenue, but if those 10 million tons of corn were converted into ethanol, subproducts, and energy, it would generate approximately R$ 12.5 billion in revenue, or five times more than just exporting the corn.