Corn ethanol is getting a big boost this summer in Brazil.
Last week, a new biofuel facility called FS Bioenergia opened up in Matto Grosso, Brazil, with the collaboration of the Iowa-based Summit Agriculture Group and Brazilian agribusiness Fiagril.
To start off, the new corn ethanol facility will process 22 million bushels of corn, to make more than 60 million gallons of corn ethanol, 6,200 tons of corn oil, and 170,000 tons of feed rations through DDGS.
Nearly $115 million dollars were invested into the new facility and it uses U.S. developed technology to help out.
Bruce Rastetter the CEO of Summit Agriculture Group says, "Products made here in Iowa are there and corn ethanol fits right in with that. Exporting the technology and with that then helping to create high quality jobs there and having that corn consumed there rather than on the world market."
That's good because Brazil is gearing up for one of it's largest corn harvests ever.
The Brazilian President was at the grand opening and Rastetter says he and other Brazilians understand corn is subsidized and think there should be incentive for using it locally, which means corn ethanol should be accepted alongside sugar cane ethanol.
Rastetter adds another value to the project is Brazil is embracing U.S. investment into their economy to allow easy transfer of dollars back to the U.S., which is good for the American FS Bioenergia investors.