APLA ‘07: Brazil BioVerde to triple output

18 November 2007 20:41  [Source: ICIS news]

By William Lemos

BUENOS AIRES (ICIS news)--Brazilian biodiesel producer BioVerde plans to nearly triple production of the biofuel in 2008 to meet an expected surge in local demand for the product next year, a company official said on Sunday.

BioVerde has installed capacity to produce 83m litres/year of biodiesel, but that figure could be expanded to 230m litres/year by the end of 2008, the source said on the sidelines of the Latin American Petrochemical Association (APLA) conference in Buenos Aires.

Brazil’s overall biodiesel production is on the rise, but the industry is struggling with the soaring costs of soybeans, which is the feedstock for 70% of the country’s biodiesel production.

BioVerde said it plans to diversify its feedstock base in the coming years to offset the rising costs of soybeans.

Brazil is expected to introduce a 2% biodiesel blend next year, according to legislation approved in 2005. The mandate will trigger demand for 800m litres/year of the biofuel, as Brazil consumes about 40bn litres/year of regular diesel.

By: William Lemos
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