15 August 2008 21:13 [Source: ICIS news]
CARACAS (ICIS news)--Pure Biofuels inaugurated a biodiesel plant in Peru, the second such plant to begin operations there as the Andean nation prepares to meet a new biofuels mandate, according to sources on Friday.
The new plant will have the capacity to produce 52m gal/year (197m litres/year) of biodiesel, 35% of which will be destined for the local market, according to statements made to the Andean News Agency by Alberto Pinto, president of Pure Biofuels' Peruvian subsidiary.
In January, Heaven Petroleum Operators inaugurated the nation's first biodiesel plant, which will produce 120,000 gal/day.
By law, Peru's diesel supply will have to consist of 2% biodiesel by the first of 2009. The amount will reach 5% by 2011.
Pinto said the plant is using jatropha to produce fuel, which is not a part of the food chain and grows on land that is otherwise very difficult to cultivate.
Many Latin American producers often argue that, unlike US producers - which rely on corn - they can more efficiently produce biofuels from sugarcane, palm oil and jatropha without pressuring the food chain.
Pure Biofuels' plant, which began construction in the summer of 2007, cost the US company $45m (€30m) to build.
($1 = €0.67)
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