24 August 2012 21:18 [Source: ICIS news]
MEDELLIN, Colombia (ICIS)--Cargill will open a biodiesel plant in Brazil's Mato Grosso do Sul state, the company said on Friday.
The plant is ready to operate and Cargill will participate in the next biodiesel tender, which is held by the Brazilian government, in September for October, November and December deliveries, the company said.
Cargill, one of the largest soybean exporters in Brazil, announced an investment of some Brazilian reais (R)130bn, ($64m, €51m) in the plant in the Tres Lagoas municipality in 2010.
The new project relies on the company’s grain trading business and was built next to an existing Cargill soybean processing plant in Tres Lagoas, the company said.
“The new project will provide the existing plant with an important alternative for selling the soybean oil they produce and will enable Cargill to enter the biodiesel business,” said Paulo Sousa, director of the Grains and Soybean Processing Business Unit.
Recent higher export taxes regulated by the Argentine government, biodiesel dumping complaints filed against Argentina in Europe and unfavourable weather conditions in Argentina have opened a window for Brazil to maybe begin to export biodiesel to Europe, a regional player in the market said.
Biodiesel production in Brazil is less than that in Argentina, where export companies including Cargill have joined local firms to process Argentine soybean fields to make biofuels.
Brazil is the world's second largest soybean producer behind the US and ahead of Argentina. Soybean oil makes up about 85% of the feedstock for Brazilian biodiesel production.
Brazilian production of cereals, legumes and oilseeds for 2012 is estimated to surpass record levels seen in 2011, according to the Brazilian Institute of Geography and Statistics (IBGE), a government agency.
The forecasted harvest for 2012 is 160.3m tonnes, 0.3% higher than the grain harvest of 2011, the agency said.
($1 = €0.80)
($1 = R2.02)
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