NPRA ’08: Brazil biodiesel boosts methanol demand

31 March 2008 17:35  [Source: ICIS news]

SAN ANTONIO, Texas (ICIS news)--Brazil’s consumption of methanol for methyl tertiary butyl ether (MTBE) production is declining, but rising biodiesel production will pick up the slack, a domestic methanol producer said on Monday.

With the shutdown of a Brazilian MTBE plant in 2007 and the conversion of another MTBE plant to ethyl tertiary butyl ether (ETBE) this year, methanol consumption for MTBE will decline by 70,000 tonnes, the source said on the sidelines of the National Petrochemical & Refiners Association (NPRA) annual meeting in San Antonio. The meeting began on Sunday and runs through Tuesday.

However, increasing levels of biodiesel production will replace the methanol demand from the MTBE sector.

The mandated mixture of biodiesel in Brazil’s diesel supply is due to rise to 3% in July 2008. The mandate will increase to 5% by 2013, although the timing could move forward to 2010-2011, the methanol producer said.

Currently, formaldehyde is the main end-use for methanol in Brazil, accounting for 60-65% of consumption. The overall Brazilian market is estimated at 550,000 tonnes/year, according to producers. Imports account just over half of all methanol consumption in Brazil.

By: David Barry
+1 713 525 2653

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