Integrated Biodiesel Industries to build third plant in Argentina, with planned capacity of 38 Mgy

In Argentina, Integrated Biodiesel Industries announced it would build a third Argentine plant, by retrofitting the Imperial Chemical plant in San Lorenzo, 180 miles north of Buenos Aires. The plant is expected to open this November with a planned initial capacity of 14 Mgy, and expanding to 38 Mgy by the end of 2009.

In Argentina, director of the Argentine Association of Biofuels and Hydrogen predicted exponential growth of biodiesel. Claudio Molina projected that exports will increase to $1.1 billion, up from 268 million in 2007. The opening of seven new plants, at a cost of $400 million, is credited with the increase, as production capacity increases to 1.6 million tonnes this year with the opening of a 300,000 tonne Louis Dreyfus plant in Santa Fe province.

By contrast, in Argentina, a restriction on beef exports aimed at reducing local beef prices has led to a conversion of 10 percent of Argentine ranchlands to soybean production.

Soybean is not subject to export or price controls and 50 percent of all cultivated land in Argentina is used to grow soybeans. 90 percent of the crop is exported.

Last year, the Argentine federal government increased the export tax on soybeans, soy products and corn, but exempted biofuels from increases. This move is expected to spur exports of Argentine biodiesel and ethanol to the EU and the US. The province of Santa Fe, which hosts most of the major biodiesel plants, has additional incentives in place.

The fast-growing Argentine biodiesel industry features facilities built by Unitec Bio, Molinos Rio de la Plata, Louis Dreyfus, Patagonia Bioenergia, Explora and GEA Biodiesel among others. Companies such as Royal Caribbean have been procuring biodiesel from Argentina in recent months.

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