Guildford, UK – TMO Renewables (TMO), a UK developer of second generation biofuels technology, and Usina Santa Maria Ltda are to form a JV to build the first commercial production plant in Brazil to convert sugar cane waste (bagasse) to cellulosic bioethanol. 
Under an MOU, TMO is to build, own and operate a 10-million-litre second generation ethanol pilot plant to convert bagasse to cellulosic bioethanol.
This will be followed by the construction of full-scale industrial plant, alongside a sugar mill owned by Usina Santa Maria at Cerquilho, São Paulo state. The facility is due to go into production in 2014.
The bioethanol will primarily be used to power Flex-Fuel vehicles in the domestic market. The project is expected to create over 150 new jobs for British engineers.
Brazil is the second largest producing nation of First Generation ethanol with a rapidly-developing demand for ethanol to replace hydrocarbon fuels. In September 2012, TMO signed a Letter of Intent to secure long-term supply of feedstock.
The MOU guarantees a 20-year supply of feedstock as part of the joint venture to build the pilot plant.