Brazilian ethanol and biodiesel company Comanche Clean Energy is raising USD85m in a private placement to increase the production capacity of its Canitar ethanol plant to 100m litres/26m gallons per year. The money will supplement USD46m the firm raised in equity and debt financing last December. The Canitar plant is currently under construction and is due to begin commercial operations in September. The firm says it aims to reach a capacity of 200m litres/53m gallons per year at the plant by the end of 2009.

Comanche claims the Canitar plant will be the most modern ethanol facility in Brazil and includes an operations centre that cuts staffing by half. Comanche’s chairman Tom Cauchois says the plant is important in helping the firm meet Brazil’s demand for ethanol, which he says has grown by 46% this year. Comanche also operates an ethanol plant in Santa Anita and a biodiesel facility in Bahia, and says it aims to reach a total ethanol production capacity of 300m litres/79m gallons per year by 2010.