Amaggi is entering the biofuel sector by acquiring a 40% stake in Brazilian corn ethanol company FS, bolstering the commodity company’s decarbonization efforts and diversifying its operations.
The partnership is designed to streamline and improve corn origination, logistics, and exports by vertically integrating Amaggi’s operations into FS’s processing capacity. FS generated R$12.8 billion in net revenues in 2025, processing 6 million tons of corn and producing 2.6 billion liters of ethanol and 2.2 million tons of dry distiller grain (DDG).
Operating in the Brazilian state of Mato Grosso with a headquarters in São Paulo, FS operates ethanol plants in Lucas do Rio Verde, Sorriso, and Primavera do Leste and has plans to expand into Campo Novo do Parecis.
Amaggi’s stake in FS will support its long-term sustainability goals, including the goal to have net-zero greenhouse gas emissions by 2050. Amaggi is shifting its ag machinery, trucks, and vessels to biodiesel through production of the biofuel at its Lucas do Rio Verde, as part of its Projeto B100.
“We have been studying our entry into this sector for several years, and the choice to partner with FS reinforces our commitment to innovation, sustainable development in the agricultural sector and the company’s decarbonization goals. We have expanded our presence across the grain value chain on several fronts through both proprietary investments and partnership investments, so I believe this investment in corn ethanol will also deliver excellent results,” said Judiney Carvalho, CEO of Amaggi, in a press release.
Rafael Abud, CEO of FS, added, “The partnership with Amaggi marks a very important moment for FS, given the opportunities for expansion of this industry in Brazil and the need to decarbonize large global transportation sectors. Combining our experience and innovation capabilities focused on reducing carbon intensity with Amaggi’s strong presence and structure within this production chain will significantly strengthen our competitiveness.”
Amaggi’s investment in FS follows a decision to terminate a joint venture agreement with ethanol producer Inpasa on a Mato Grosso plant. The decision to terminate the joint venture stems from “differing visions regarding the project’s structure and governance,” Amaggi shared in a press release.
