The Brazilian Development Bank (BNDES) has approved a BRL-157-million (USD 32m/EUR 29.4m) project finance loan for Bioo Holding SA to facilitate the establishment of a biomethane plant in the state of Rio Grande do Sul. Notably, BRL 79.8 million of the financing will be sourced from the bank's Climate Fund Programme, as announced on Thursday.
The biomethane production facility, set to be constructed in Triunfo municipality, is anticipated to boast a production capacity of 13 million cubic meters of biomethane annually. This capacity is projected to mitigate over 14 million tonnes of carbon dioxide (CO2) equivalent emissions each year.
With a planned total investment of BRL 196 million, the plant will utilize organic inputs sourced from local industries, including meat processing, paper and cellulose, and waste treatment.
The produced biogas is slated to be supplied to the Rio Grande do Sul Gas Company (Sulgas), which will, in turn, distribute it across the state, according to BNDES.
