In the second half of 2010, ETH Bioenergy will start up operations at its fourth ethanol and electricity production hub, located on the tri-state border of Goiás (GO), MatoGrosso (MT) and MatoGrosso do Sul (MS). Later this year, two new factories – Morro Vermelho (GO) and Alto Taquari (MT) – will start milling sugarcane, and by 2012, two more will go onstream. All told, these four units will create around 5,000 work opportunities and make ETH one of the leading companies in the sugar/power industry.

Completely mechanized, and equipped with advanced technology, the factories will have another advantage – low maintenance costs. Managing Director Fabiano Zillo underscores the features that set this production hub apart: “The layout of these units will allow greater use of sugarcane straw as fuel for power generation, even during winter. Another innovation is the high-capacity diffuser to extract the juice.” To adapt the plants to the dry climate of Brazil’s Midwest, in addition to water-free cleaning systems, they are equipped with a gas scrubber that reduces water consumption.

Jointly, by 2012 Morro Vermelho, Alto Taquari, and Costa Rica (MS) and Emendada (GO) will have the installed capacity to mill 14.4 million metric tons of sugarcane per harvest, enough to produce 1.3 million liters of ethanol and 1,180 GWh of electricity. To meet its production needs, ETH will plant around 200,000 ha of sugarcane. “It’s a challenge, because the region’s economy is also based on other crops and livestock husbandry. We will engage in an intensive process to qualify suppliers and tenant farmers to become long-term partners of ETH,” observes Fabiano Zillo.

The new units will increase income levels and the quality of jobs in nearby towns and cities, and have already begun to heat up their local economies. Fernando Freitas, a merchant and great-grandson of the founder of the Goiás city of Mineiros, emphasizes: “Developments like these drive the region and benefit the city’s businesses. We will see a major positive change in the services sector in the coming years.”

Educating and grooming teams of skilled workers to operate farm equipment is another challenge. “By 2012, we will have 5,000 members,” says Erico Baracho, the People and Administration Manager at the Hub. “Our priorities include educating these workers, adapting them to new technologies, providing conditions for this talent to stay in the company and introducing them to the Odebrecht Entrepreneurial Technology (TEO),” he says. He also highlights the importance of good community relations. “We have visited several towns in the vicinity to introduce them to ETH: who we are, what we do, and how we want to partner up with our local municipalities and community members.”

By 2012, production at the new hub will represent roughly 40% of ETH’s total output. Although significant challenges lie ahead, Fabiano Zillo is confident. “The team is highly motivated. There are many top-notch professionals here who are team players that identify with ETH and have undertaken the responsibility to help the company become number one in its industry.”