Brenco (Brazil) Sub-sector: Ethanol Investment type: Greenfield

Brenco is the largest greenfield project in the Brazilian ethanol arena. Total crushing capacity is expected to reach 45-50m tons of production by 2013. The company’s goal is to become the largest ethanol player in Brazil and also the lowest cost producer.

Tarpon brought together partners from the United States (Vinod Khosla, Ron Burkle, James Wolfenson and Steve Case, among others) and Mr. Philippe Reichstul (former CEO of Petrobras), who is also serving as Brenco´s CEO.

In the initial round of financing, Brenco raised US$200m from equity investors to start its initial project. Total investment should amount to US$2 billion (equity+debt) to complete the project. A new round of equity finance will be required. The goal is to become the largest ethanol player in Brazil focused on exports.

Brenco has structured its first cluster in the Center-West region (States of Goiás, Mato Grosso and Mato Grosso do Sul) where 5 mills will be implemented, with an overall crushing capacity of 24 million tons. That volume represents 60% of the original Business Plan.

As a founding partner of the project, Tarpon received warrants to buy additional shares of Brenco at its initial price over the next 10 years.