January 9, 2007

Brazil biodiesel production to increase 300 percent
 

Brazilian projects are expected to produce 9 million litres per day of bio-diesel and would require investments of BRL 800 million (US$ 373.8 million) in the next two years, according to analyst Safras & Mercado estimates.

Among the projects planned for this market, 23 alone could produce 4.044 million litres. They have already been filed with the National Petroleum Agency and are awaiting authorisation.

Of these, 10 projects in Sao Paulo state alone total 1.2 million litres/day followed by Rio Grande do Sul with three projects totalling 820,000 litres/day and Goi¨¢s, with 708,000 litres/day.

The state of Mato Grosso, the largest producer of soybeans in Brazil, has two bio-diesel plants in production, authorised by the ANP. Together they process 186,000 litres a day. Three more are awaiting authorisation.

Some more projects are "waiting" expecting the government to increase incentives for what is called the "Social Seal" (Selo Social), according to the economist and bio-diesel analyst of Safras & Mercados, Miguel Biegai.