BASF begins Brazil plant construction, targets biodiesel market

10 February 2010 15:13  [Source: ICIS news]

HOUSTON (ICIS news)--BASF has begun construction of a 60,000 tonnes/year sodium methylate plant in Guaratingueta, Brazil, as part of a plan to meet growing demand in the South America biodiesel market, the German producer said on Wednesday.

It is the second BASF plant for sodium methylate, a catalyst for the production of biodiesel. The other plant is located in Ludwigshafen, Germany.

The Brazil project is expected to be operational by the end of 2011, and will cost “in the low double-digit million euro range” to construct, BASF said.

BASF said it expects 15% of the annual global demand for biodiesel to come from South America by 2015.

“This development and the investment in a new plant show the significance of biodiesel as well as BASF’s commitment to this market and region,” said Rolf-Dieter Acker, BASF’s president of South American operations.

“Our Guarantingueta site offers synergies with existing plants and utilities, as well as logistics advantages for import and export operations to our customers,” Acker added.

The company cited legislation in Brazil and Argentina requiring fuel to contain 5% biodiesel from 2010 onward as part of expected demand growth for the product.

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By: Ben DuBose
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