The logistic system for transporting ethanol is part of the Brazilian Government’s Growth Acceleration Programme and comprises 1,330 km of pipelines with a transportation capacity of 20.8 MMcm/a as well as ten ethanol storage terminals.

The system will link the main ethanol producing regions in the states of São Paulo and Goiás, Triângulo Mineiro, south and southeast of Mato Grosso do Sul and northern Paraná to consumption centres in Greater São Paulo and Rio de Janeiro, as well as ports of Ilha D’Água (in Rio de Janeiro) and Caraguatatuba (in São Paulo), for export and/or shipment of ethanol to other consumption centres in the country.

The bridge loan will finance the first stage of the project – which covers stretches in Ribeirão Preto to Paulínia, Uberaba to Ribeirão Preto, and Anhembi to Paulínia – and the terminals in Ribeirão Preto, Uberaba, Anhembi, and Araçatuba.

The investment will provide a quicker and more reliable means of transport, with lower costs and less pollution compared to highway transport, which is currently the most common form of transport of this product.

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In addition, optimising the flow and product storage in regions closer to consumption centres will help reduce market volatility by providing a more regular supply and price stability. The project will also contribute to consolidating Brazil in the international market for producing and marketing ethanol.