April 8, 2016

Iowa-based Summit Agricultural Group broke ground on the first large-scale corn ethanol production plant in Brazil. The $115 million facility, which will be located in Lucas do Rio Verde in Mato Grosso – Brazil’s largest corn and soybean producing state, is an international partnership between Summit Agricultural Group, the Brazilian agribusiness, Fiagril, and Summit’s investment partners – Tiger Infrastructure Partners and Laverack Capital Partners.

“We are extremely proud of our international collaboration with Summit Agricultural Group on this historic corn ethanol production facility,” said Marino Franz, founder of Fiagril in a recent press release. “Mato Grosso has set the standards for Brazilian agriculture and business development for years and thanks to this effort, the region will grow to new heights in the area of renewable fuels.”

The plant, which will be the only dedicated corn ethanol plant in the country, is expected to be the most modern and efficient plant of its kind in the world, producing 60 million gallons of corn ethanol per year upon completion of construction in mid-2017.

“This is a significant day for renewable fuels, Brazil and Summit Agricultural Group,” said Bruce Rastetter, Summit CEO in a company statement. “Through Summit’s expertise in sustainable agriculture, investment and renewable energy, we will further realize the enormous corn growing potential of a region that is poised to become a global leader in corn ethanol production.“

The plant is expected to help Brazil meet its rising demand for domestic ethanol – something that the country’s sugarcane ethanol industry is unable to meet alone. Brazil began sugarcane ethanol production in the 1970s, and today is responsible for a quarter of the world’s ethanol, according to Green Car Congress. However, the Bank of America estimates that yearly Brazilian ethanol sales could top 13.5 gallons in 2022 – two-thirds more than the country’s ethanol production forecast for 2016.

The plant will also be able to provide high fiber and high protein co-products from its production to the Brazilian livestock industry. At the end of June 2015, Brazil began shipping beef to China, and in five months shipped 81,300 tons worth US$401.2 million according to industry body, ABIEC. Brazil also saw the re-opening of markets including Saudi Arabia, Qatar and Iraq last year. Looking to 2016, Brazil expects China to become the biggest importer of Brazilian beef, creating a market worth US$1.3 billion.

“That’s why today’s ground breaking at this facility is so important – it will open many new doors for the future of agriculture in Mato Grosso and throughout Brazil,” noted Justin Kirchhoff, investment development manager for Summit.