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The First Mill Dedicated to Corn Ethanol Production in the Northeast Begins Operations in Balsas (MA), Focusing on Local Supply and Exporting Byproducts Such as DDGS.
The production of corn ethanol in Brazil has just received a strategic boost with the inauguration of the first plant of its kind in the Northeast. It is located in Balsas, in the south of Maranhão.
The project, operated by Inpasa, aims to strengthen regional production and supply neighboring states, as well as pave the way for the export of byproducts.
According to the company’s trade vice president, Gustavo Mariano, the choice of Balsas considered two fundamental points: the availability of raw material and the consumption potential of the region.
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“One of the attributes was the agricultural availability here in the region, the growth and exponential development that this area has been experiencing to be able to supply, because it is pointless to set up a plant like this if we do not have a strong agro behind it,” he explained.
Inpasa Inaugurates the First Corn Ethanol Plant in the Northeast
Inpasa’s decision takes into account that Maranhão is the largest corn producer in the Northeast and Matopiba (the region that includes Maranhão, Tocantins, Piauí, and Bahia).
According to estimates from the National Supply Company (Conab), the 2024/2025 crop is expected to reach 2.9 million tons in the state.
Additionally, the demand for fuels in Maranhão is a decisive factor.
The internal consumption had not yet reached parity levels in relation to the market potential, which made the establishment of the plant a strategic move to meet local needs.
“We were very struck by the fact that Maranhão was one of the few states that did not reach consumption parity. And we looked inside and realized that it is a state that has an enormous capacity to absorb biofuel,” emphasized Mariano.
Production Capacity and Phases of the Project
The project was developed in two phases. The first phase, already in operation, has the capacity to produce 500 million liters of ethanol, including both anhydrous and hydrated versions.
The second phase will be completed in September, increasing the production capacity by an additional 425 million liters.
In total, the plant will have the potential to process nearly 1 billion liters of the biofuel per year.
This scale reinforces the importance of the facility in supplying gas stations in Maranhão and neighboring states. Additionally, it reduces dependence on fuels from other regions.
DDGS: Byproduct with Export Potential from Corn Ethanol
In addition to ethanol, the Balsas plant will produce DDGS (dried distillers grains with solubles), a byproduct rich in proteins, mainly used in animal feed.
The estimate is that 490 thousand tons of DDGS will be generated annually.
This volume not only meets domestic demand but also opens up space for exports.
Between September 2024 and May of this year, Brazil managed to open nine new markets for DDGS. Among them is China, according to data from the Ministry of Agriculture and Livestock (Mapa).
“We intend to export product here through the Port of Itaqui. The railway flow, intermodal integration here in the state, certainly makes a huge difference for us as well. The first phase is already operating, and starting in September, when we reach full production capacity, we should further increase our position and thus use more of the Port of Itaqui’s facilities, which we already utilize,” said Mariano.
The establishment of the plant also received tax incentives from the Maranhão government, which granted a waiver of approximately 90% of the tax burden.
Other states competed for the project, but the strategic location and state support were crucial for Balsas to be chosen.
Governor Carlos Brandão emphasized, during the inauguration, the expected positive impact on the local economy around the corn ethanol plant.
He stated that the arrival of the plant is expected to attract new investments, especially in the animal protein sector.
“This is a chapter for attracting new investments because from now on we will attract chicken slaughterhouses, pig slaughterhouses, cattle slaughterhouses, so that we can add more value [to the products],” he said.
Na verdade, a primeira usina de etanol de milho do nordeste é a Usina Pindorama, localizada no litoral sul de Alagoas. É uma usina flex. Já está na terceira safra produzindo etanol a partir de milho e sorgo.