Browse > Home / International / AE Biofuels, DS Development to construct 75 Mgy soy biodiesel plant in Argentina

AE Biofuels, DS Development to construct 75 Mgy soy biodiesel plant in Argentina

June 17, 2008

In Argentina, AE Biofuels announced an agreement with DS Development to jointly construct and operate a 75 Mgy soy biodiesel plant in Rosario, the center of the Argentine biodiesel industry. The company said that it will refine 25 million tonnes of glycerin produced in Rosario to pharmaceutical grade glycerine at the company’s plant in Kakinada, India.

Argentina background report

An increase in the export tax levy on biodiesel from 5 to 20 percent has not slowed biodiesel shipments, but it has halted new project development activity. “The problem is with new projects … there are foreign investors who have decided to put the brakes on a move to Argentina,” Claudio Molina, head of the Argentine Biofuels Association, told Reuters.

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.

  • Two biofuel electricity plants open in Argentina, to produce 31 megawatts
    • In Argentina, Dynamotive Energy Systems will construct two biofuel electricity plants in Corrientes province. Each plant will produce 15.7 megawatts of electricity from wood waste. Last month, Biod...
  • 17 Mgy biodiesel plant announced for Rosario, Argentina
    • In Argentina, Integrated Biodiesel Industries signed a letter of intent to construct a 17 Mgy biodiesel plant in Rosario. Argentine investors will also participate in the $3.5 million financing. IBI r...
  • Argentina exempts biofuels from tax hikes to spur exports of biodiesel, ethanol
    • 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 eth...
  • Argentina, Bolivia, Brazil, Chile, Paraguay and Uruguay sign biofuels pact
    • In Paraguay, member nations of the Southern Agricultural Council (Argentina, Bolivia, Brazil, Chile, Paraguay and Uruguay) agreed to cooperate on biodiesel development and production. Brazil has be...
  • 50 percent of cultivated land in Argentina now used for soybean as beef export controls backfire
    • In Argentina, a restriction on beef exports aimed at reducing local beef prices has, instead, led to a conversion of 10 percent of Argentine ranchlands to soybean production. Soybean is not subject...
  • Renova identifies $13 million in cost overruns at Idaho plant; development halted; shares suspended; negotiating new finance
    • In Idaho, Renova has completed a review of cost overruns of up to $13 million in the construction of its Heyburn plant, which drove overall project cost to as high as $59 and resulted in a liquidity s...

    Written by Jim Lane · Filed Under International 

    Comments

    Got something to say?

    You must be logged in to post a comment.