Grupo Inpasa has acquired 50 railcars and 2 locomotives for R$ 100 million to enhance its ethanol transport capacity via rail, significantly reducing CO2 emissions in the process.

Target Information

The acquisition involves Grupo Inpasa, which is set to significantly enhance its ethanol transportation capacity via rail. With the purchase of 50 railcars and 2 locomotives, the company's transport capacity will exceed 1.01 billion liters annually. This strategic move, valued at approximately R$ 100 million, will be operationalized by Rumo, Brazil's largest railway operator, thereby expanding Inpasa's distribution network while achieving a reduction of up to 60% in CO2 emissions associated with road transportation.

Grupo Inpasa is a leader in ethanol production in Latin America, responsible for supplying 10% of Brazil’s ethanol market, equating to 5.9 million vehicles fueled. The company also exports 100 million liters per year with EU RED certification to all countries in the European Union and Japan. This acquisition is expected to enhance logistical efficiency and customer delivery reliability.

Industry Overview in Brazil

The Brazilian ethanol industry has experienced significant growth in recent years, driven by increasing domestic demand for renewable energy sources and government initiatives promoting biofuels.