Agrenco Bioenergy’s first Brazil plant starts ops

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.

Agrenco Bioenergy, a joint venture of Japan’s Marubeni Corp and the Netherlands' Agrenco Group, will begin commercial production at its two other biodiesel plants in April and May respectively.

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 Brazil and will have a combined capacity of 400,000 tonnes/year of biodiesel, he said.

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 Brazil market as the country grows large quantities of soybean, and has a mandatory requirement of a 2% mix of biodiesel blend in diesel fuel from 2008.

“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 Brazil’s biodiesel fuel capacity to 2m tonnes/year - about double the domestic demand - by the end of 2008, he added.

Agrenco's operational centre for its agribusiness is concentrated mainly in Brazil.

($1 = €0.64)

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By: Arujnee J Ram
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