20 ethanol mills may be closed by ANP in Brazil

Date:12-02-2013

The Brazil's National Agency of Petroleum, Natural Gas and Biofuels (ANP) may finally be prepared to close the ethanol mills that are operating without authorization, Agrolink reports. Information gathered by Portal novaCana indicates that there are at least 20 units working in Brazil without any qualification by the agency.

As determined by ANP 26/2012 resolution, the authorization is mandatory requirement and the units that are producing ethanol without registration may be closed and they have to pay a fine of R$ 200,000 and, as already informed the agency, "will be prevented from selling their production".

Although the resolution is in force since last year, ANP suffered to adapt to the ethanol market. Now, after completing the registration of almost all mills and having already sent notices to the irregular ones, the agency must send the controller for verification and assessment.

To identify irregular companies, ANP had an easy job thanks to SapCana system, from the Department of Agriculture (MAPA), which indicates the units currently in operation.

Last month ANP contacted Portal novaCana requesting the listing of mills registered at MAPA that had not yet been authorized by the agency. The request came recently that revealed that Brazil has 43 ethanol mills that should be active, but could not be operating.

After the list’s submission, ANP has published a new round of authorizations with dozens of mills according to the listing sent by novaCana. However, there are still 20 units not registered, but they are reporting production at MAPA. These units should be the first ones to receive the controllers.

Most mills are located in São Paulo (7), among others: Goias (3), Minas Gerais (3), MatoGrosso do Sul (2), Mato Grosso (2), Espírito Santo (1), Alagoas (1) and Bahia (1).