The Banco Nacional de Desenvolvimento Econômico e Social (BNDES) has approved three financings for Usina Laguna Álcool e Açúcar Ltda., totaling R$ 170.4 million. These funds will enable the construction of a sugar factory and a warehouse, the acquisition of machinery and equipment, and investments in energy efficiency for ethanol production, the company's main business segment.

The factory, to be implemented at the industrial unit in Batayporã (MS), will produce 120,000 tons of sugar per harvest. The warehouse will have a static capacity for 50,000 tons of sugar. Financing for this project includes R$ 26.4 million from BNDES Finem and R$ 25 million from the Programa de Construção de Armazéns (PCA) under the 2023/2024 Harvest Plan. PCA aims to enhance the competitiveness of the agro-industrial complex and reduce storage deficits in the country.

With a financing of R$ 56 million, Laguna will acquire national machinery and equipment for the new factory and warehouse, as well as upgrade national industrial machinery at the Batayporã industrial unit. Additionally, agricultural machinery and other industrial materials will be purchased.

BNDES will also support the company with R$ 63 million through the BNDES RenovaBio Program to improve energy efficiency and certify ethanol production at the Batayporã facility. The program aims to promote decarbonization in the biofuels sector.

"The objectives of President Lula's government's new industrial policy include supporting agro-industrial chains to expand production, which includes increasing storage capacity in the country. In this regard, BNDES is working to reduce Brazil's historical deficit of warehouses," stated BNDES President Aloizio Mercadante.

"The support from BNDES has been crucial for expanding Usina Laguna's production mix, providing flexibility in product offerings for commercialization. It will also increase the company's annual milling capacity, creating more jobs and enhancing income distribution," said Usina Laguna's Commercial Director, Romildo Carvalho Cunha.

According to José Luís Gordon, Director of Productive Development, Innovation, and Foreign Trade, stimulating biofuels production is a strategic action for the bank, alongside promoting the modernization of processes to make them more sustainable: "In 2023 alone, BNDES approved R$ 2.6 billion in financing for biofuels, the highest amount in nine years. These funds include support for production and energy efficiency, aiming to promote decarbonization, a government priority."