15 March 2006 16:43 [Source: ICIS news]
LONDON (ICIS news)--Newly-created biofuels company Infinita Renovables is to invest Euro300m ($356m) to build three biodiesel factories in Spain with a total capacity of 900,000 tonne/year, a spokeswoman for the firm's major shareholder said on Wednesday.
Completion of the plants, scheduled from Q1 2008, would make Infinita Spain's largest biofuels producer, the spokeswoman for engineering group Isolux, 50% shareholder in Infinita, added. Telecoms entrepreneur Antonio Portela has 25% and Spanish bank Santander Central Hispano (SCH) has 5%, the Isolux spokeswoman said.
The three factories will each make 300,000 tonne/year of biodiesel, the spokeswoman added without disclosing their planned locations.
Spanish newspaper La Voz de Galicia said the first factory is likely to be built outside Vigo in northwest Spain at a cost of about Euro100m. The other plants will probably be located near key ports in the Atlantic and Mediterranean shores, the spokeswoman added.
Infinita hopes to export 30% of the plants' output to other European Union members and sell the rest in Spain, which has an ambitious plan to expand its renewable-energy sources.
New Eurpean Union legislation mandating minimum levels of biofuels in diesel have prompted a wave of investment in biodiesel plants. In Spain, Infinita faces competition from major players such as Becco, Abengoa, Puleva and Sniace.
Biodiesel, a renewable energy source, is produced from vegetable oils like rapeseed oil or soy oil. It can be blended with mineral oil based diesel or substitute diesel completely.
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