In Brazil, Proparco is supporting Tereos Group’s investments with climate co-benefits
published on 29 March 2021
By allocating a USD 30m loan to Tereos, Proparco is reiterating its support to a longstanding partner, in the construction of biogas production plants, which will allow the company to reduce its CO2 emissions, and with the installation of wastewater treatment units.
One of the five largest producers in the sugar-ethanol sector in Brazil, Tereos Sugar & Energy Brasil (“TSEB”) is a Brazilian company acquired in 2001 by the French sugar cooperative group Tereos SCA Group (“Tereos”), one of the French leaders in the agro-industry.
Proparco is a longstanding partner of Tereos. A first USD 50m loan was allocated in 2010 to support the company’s growth, while helping reduce greenhouse gas emissions in Brazil with the production of ethanol and green energy. It was followed by a second USD 40m loan in 2019 to support its long-standing partnership with VLI for sugar exports by railroad, which represents 220 kt reduction in CO2 emissions.
This third loan to Tereos by Proparco will finance the construction of three biogas production in Cruz Alta, Tanabi and São José plants, the installation of water treatment units in all seven plants of the company located in the State of Sao Paulo and cogeneration investments in the Severinia plant.
Supporting Tereos Group’s sustainable investments
Tereos has been committed to a sustainable growth model for several years. Its objective is to improve its agricultural performance, optimize its energy consumption and promote energies with low CO2 emissions.
TSEB has a negative carbon footprint through its bioethanol production and cogeneration plants which produce renewable energy using bagasse, an organic residue from sugarcane. Tereos is the 2nd largest seller of energy from biomass per ton of cane in the sugar/ethanol industry in Brazil. This new loan from Proparco will allow Tereos to reduce its CO2 emissions by financing biogas production plants using vinasse. These units will generate green energy, which will be exported to Brazil’s power grid, as well as biomethane, which will replace the use of diesel by the company’s tractors and trucks, which is the largest CO2 emission in the whole agri-industrial operations of the company, or be sold on the local market as bioenergy. The investments in wastewater treatment will also contribute to improving the environmental footprint of Tereos.
This project will thereby contribute to SDGs n° 7 (“Clean energy at an affordable cost”), n° 8 (“Decent work and economic growth”), n° 9 (“Industry, innovation and infrastructure”) and n° 13 (“Fight against climate change”).
