29 October 2010 21:06 [Source: ICIS news]
MEXICO CITY (ICIS)--Mexican industrial conglomerate Grupo KUO and Spanish company Repsol announced a new bioenergy joint venture based in Mexico named KUOSOL.
Each company had a 50% stake, and each would contribute $15m (€11m) to begin the venture. They estimated on Thursday that $80m would be invested by 2014.
Activities would range from agronomic operation to industrial installation, drawing oil from the Jatropha curcas plant to develop a sustainable source of biodiesel energy.
The business model was developed from a 2008 pilot project that began with 740 acres (299 hectares) of Jatropha curcas plantations, which do not compete with food harvests and are planted on soil that is not suitable for agriculture in Mexico's Yucatan state.
The first stage for the new company would be to plant 24,700 acres of Jatropha curcas in land currently used by Grupo KUO as sanitary belts to absorb waste runoff from its pork production facilities.
The land was expected to produce 40,000 tonnes (44m litres) of raw oil by 2016.
The companies said they expected that agronomical development would conclude within three years, and look to begin developing KUOSOL's industrial units around 2013, with full capacity production starting by 2016.
($1 = €0.72)
To discuss issues facing the chemical industry go to ICIS connect
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|