Southridge Receives US $7.5 Million for Brazil Ethanol Plant

Southridge Enterprises Inc. announced that the company’s subsidiary, Southridge Brasilia Corp. (SBC), has received a total of US $7.5 million from its project partners for the construction of the ethanol facility in Brazil.

Southridge said that it worked closely with Brazilian partners Durmundo Carasca SA (DCSA) and Briskul Transaccao LTDA (BTL) in the development of the company’s plant in Brazil. DCSA has now completed their US $5 million contribution for their 15% interest in the new facility. In addition, BTL has exercised their option to increase their position in SBC for an additional US $3.27 million bringing their total interest to 35%.

This investment follows last week’s announcement from Southridge that it was ahead of schedule on construction of its El Salvador-based ethanol production facility. Announced in December 2007, the new plant will have a maximum annual capacity of 20 million-gallons-per-year (MGY).

Southridge also announced last week that it has entered into an ethanol sales agreement with Hong Kong based Jinsung Ho Trading Group (JHTG) for the supply of 20 million gallons of ethanol per year. Deliveries are expected to begin in October 2008. The ethanol is being sourced from Petrozilian Energia SA (PES) from Brazil.

This all follows recent debate on lifting the tariff on Brazilian ethanol being imported into the U.S. and its possible impact on U.S. consumers and ethanol producers.

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