Energy America Brazil Wood Resources Ltda will make a EUR 40 million investment to build a pellet factory in Rio Grande do Sul state.
As Renewables reported, the factory, based in the city of Rio Grande, will be targeted on exports and its implementation will take place in three phases.
The first EUR 6 million investment will be for a facility able to produce 70,000 tonnes of pellets each year. During the second phase, there are plans for the production and export of 400,000 tonnes of wood chips, while the last phase includes the production of over 350,000 tonnes of pellets per year.
As Renewables stated, the remaining EUR 33.885 million will be invested in the second and third phase, which would be completed during a five-year period.
The pellets will be produced from eucalyptus, pine and acacia forests grown in the southern region of the state and they could also be used as fuel for renewable power generation.