19 March 2008 10:28 [Source: ICIS news]
SINGAPORE (ICIS news)--Brazil-based Agrenco Bioenergy has begun commercial production of biodiesel with the opening of the company’s first plant in central Brazil last week, an official from Marubeni said on Wednesday.
Production is based 90% on soybean feedstock in all three plants, with the remainder coming from sunflowers, cotton seeds and animal fat, the official said.
The plants are located in three different states in central ?xml:namespace>
He declined to disclose Marubeni’s investment details in the JV, which was set up early last year with Agrenco, but earlier media reports have indicated that Marubeni has invested $40m (€25.2m) in a 33% stake.
The company will mainly target the domestic
“So it offers a very good market for us. We will supply the biodiesel domestically for use in trucks and other heavy-duty vehicles,” the official said.
“Rising soybean costs have increased our production costs but we are still making a good margin,” the official said, adding that Agrenco was chosen as its JV partner as it has a good network to supply and distribute soybeans.
Output from the plants is expected to boost
Agrenco's operational centre for its agribusiness is concentrated mainly in
($1 = €0.64)
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