BNDES provides financing for ethanol pipeline project in Brazil

By Erin Voegele | January 10, 2019

In Brazil, the National Economic and Social Development Bank (BNDES) has announced an agreement with Logum Logística SA under which it will provide R$1.81 billion ($487.8 million) in financing to expand ethanol pipeline and storage infrastructure.

According to BNDES, the existing pipeline system transported 2.5 billion liters (660.43 million gallons) of ethanol in 2017. The expansion project, expected to be complete in 2021, will expand capacity to more than 8 billion liters of ethanol per year.

A statement released by BNDES indicates 128 kilometers (79.54 miles) of new pipeline added through the expansion project will replace an estimated 400,000 truck trips per year in the São Paulo metropolitan region, reducing carbon dioxide emissions by the equivalent of 700,000 tons per year.

According to the BNDES news agency, once the expansion system is complete, the pipeline system will span approximately 481 kilometers. Approximately 353 kilometers of pipeline is already operational.