Trading Emissions buys into Brazil biodiesel plant

Trading Emissions, a
closed-end investment
company based in the
UK, has invested $66.1
million (€48 million) in
an equity stake to fund
the construction of a
biodiesel refining plant
in Brazil.
The plant, in the state of
Goias, will produce 200,000
tonnes of biodiesel annually,
and has secured the rights to
commercialise all credits it
receives – certified emissions
reductions (CERs) – for
cutting carbon emissions from
the project.
The plant is expected to be
commissioned in July 2008.
Additionally, the project will
invest in the cultivation of
non-edible feedstock,
including jatropha, to provide
a secure and cost-effective
supply to Bionasa
Combustivel Natural, a
specially formed company.
Paulo Todaro of Mercatto
Investimentos, the investment
advisor to Bionasa, says:
‘This deal represents one of
the largest biodiesel projects
in Brazil as well as one of the
largest equity plays in this
space.’
Ricardo Nogueira of EEA
Fund Management, the
investment advisor to TEP,
adds: ‘This is a great
opportunity for Trading
Emissions to partner with one
of Brazil’s leading agricultural
players and to benefit from
the Brazilian government’s
new legislation that sets
mandatory targets for the
proportion of biodiesel to be
blended in to Brazil’s
biodiesel.’ !