Agrenco to invest US$100mn in 3 biodiesel plants - Brazil

Agrenco to invest US$100mn in 3 biodiesel plants - Brazil
BNamericas - Santiago,Chile
Dutch agribusiness group Agrenco and two Brazilian agriculture cooperatives together plan to invest US$100mn to build three biodiesel plants in Brazil, Agrenco ...

Dutch agribusiness group Agrenco and two Brazilian agriculture cooperatives together plan to invest US$100mn to build three biodiesel plants in Brazil, Agrenco said in a statement.

The plants, which are due to start operations by the end of 2007, will have combined capacity to produce 380,000 tonnes of biodiesel a year.

The plants will be in the states of Mato Grosso, Mato Grosso do Sul and Paraná, close to Agrenco's Brazilian headquarters in the southern state of Santa Catarina.

The two cooperatives are C Vale Agroindustrial from Mato Grosso and Coagri from Mato Grosso do Sul. The plants will use different oilseeds purchased from 20,000 small-scale farmers, the statement said.

Demand for biodiesel is expected to surge in coming years since Brazil's government decided all diesel sold in the country must contain a 2% biodiesel admixture from January 2008.

The regulation will create demand for roughly 1 billion liters of biodiesel a year, according to the government. As a result, some 57 new biodiesel plants are due to start operations in coming years, according to the mines and energy ministry.

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