12 March 2012 17:15 [Source: ICIS news]
MEDELLIN (ICIS) --The Argentine company, Alimentos del Sur, plans to invest $40m (€30m) to build an ethanol plant, the country’s Ministry of Industry said on Monday.
The plant will be in the northern Argentine province of Entre Rios, according to the ministry.
The Argentine government will supply half of the investment and the Alimentos del Sur will fund the remaining half as the nation struggles to cut dependence on petroleum-based transport fuels.
Alimentos expects to produce 83m litres/year (22m gal/year) of ethanol using sorghum and corn as feedstocks, the ministry said.
The ethanol production will supply domestic demand and also be sold into the export market.
A lack of ethanol production in Argentina has meant the country has been unable to fulfil a law requiring that 5% of gasoline is replaced with fuels made from crops such as sugarcane and corn.
In November 2011, ProMaiz, a venture between Bunge and Aceitera General Deheza, started clearing land for Argentina’s biggest ethanol plant. The plant is expected to produce 140m litres/year.
($1 = €0.76)
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