New pellet plant to launch in Butia, Brazil

Brazilian firm Butia Industria e Comercio de Pellets will invest BRL 5.16 million (€1.45m) in the construction of a pellet factory in Brazil's Rio Grande do Sul state.

The plant in the city of Butia will produce pellets both for the domestic market and for exports mainly to the European market, which is currently looking for biomass to help reduce its coal dependency, the company said in a statement.

36,000 tonnes of pellets

When complete, the plant is expected to have an annual production capacity of 36,000 tonnes of pellets.

The raw material to be used in the production of the pellets will come from eucalyptus, originated from the forests grown in the Centre-South region of the state. The pellets can be used as fuel for renewable power generation.

The plant is expected to bring 12 direct jobs and 60 indirect jobs to the state.