AMERICAN COMPANY TO INSTALL FACILITY IN CANDIOTA
Source: Jornal MINUANO, Brazil. Edition of June 5th, 2015. By Melissa Louçan.
Open Translation by TransGas Development Brazil.
Chief Executive of TransGas Development Systems
responded to an interview request by the MINUANO.
The installation of a new industrial facility in the region was
announced in March. The American group TransGas
Development Brazil intends to install a facility in Candiota
and start the production of fertilizers with the gasification of
coal. The goal is the plant to be in full op already eration by
2019. The Memorandum of Understanding between the
company and the Government of the State of Rio Grande do
Sul was signed already in March, and follow-up work has
been going on in Candiota since then.
The Secretary of Industry and Trade of the Municipality of
Candiota, Mr. Anderson Teixeira de Moraes, informs that the
City Hall has submitted a Law Project to the City Council
requesting the disappropriation of a site for the installation of
the company. This proposal has already been voted for, with
a positive outcome, and the site of around 100 hectares will
be available to the company shortly.
The team of MINUANO newspaper has talked to Mr. Adam
Victor, the President and CEO of TransGas Development
Systems, headquartered in New York City. Via e-mail, he
explained the expectations of the company and how the
plant will operate in Candiota.
According to Mr. Victor, the city received preference in the
selection because of the abundance of the coal reserves and
the Government’s incentives for the installation more coalbased
industries here. “We have chosen Candiota because
of its proximity to open-pit coal mines that are already
licensed and in full operation, and the knowledge and
experience of the city in projects in the coal sector”, he
The facility will extract Syngas from coal (synthesis gas,
composed of carbon monoxide and hydrogen), the raw
material for the production of fertilizers (ammonia, which is
converted into urea). The Rio Grande do Sul State Mining
Company (CRM, Companhia Riograndense de Mineração)
will provide 2.5 million tons of coal per year to the American
group’s industrial plant.
As it is a new technology to the country, questions arise
about the plant operations in Brazil. However, Mr. Victor
reassures that it is a clean technology and it does not violate
any environmental regulations in its operation. “It refers to a
technology that is clean, widely employed and licensed, and
in full operation in the European Union (France, Sweden,
Germany, The Netherlands, Italy, Belgium), in the United
States, in Japan and South Korea”, Mr. Victor affirms.
The construction period of the facility is from 32 to 39
months and the goal is to start the Rio Grande do Sul
production of nitrogenous fertilizers in the year of 2019. The
confirmation of the start date of construction depends on
obtaining the offtake agreements for long-term sales of the
fertilizers that will be produced in Candiota. “We will use
existing infrastructure to transport the fertilizers to the entire
state of Rio Grande do Sul and Brazil”, the President of the
company points out.
Raising investments of over US$ 2.8 billion (exceeding R$ 6
billion), according to presentation given yesterday by the
President of TransGas, the project will create five thousand
temporary construction jobs. After being completed, the
facility will have 300 permanent job posts. Contractors and
partners will create more 300 jobs and 600 jobs in the areas
of infrastructure and mining.
June 4th, 2015
Original article in Portuguese: