Brazil's Potencial will invest $109 Million to make the world's biggest biodiesel factory.
Grupo Potencial, a Brazilian company, announced Tuesday that it would invest 600 million reais (108.86 millions dollars) in order to increase the biodiesel production at one of their plants. This will give the facility the largest capacity of biofuel based on soy oil anywhere in the world.
Why it's important
The Brazilian government has been working to expand the use of biofuels on local markets.
The President Luiz inacio Lula da So will sign into law a bill called Fuel of the Future on Tuesday, to promote the gradual addition of biodiesel to diesel.
By the Numbers
The plant in Parana will be able to produce more biodiesel, increasing its capacity from 900 millions liters (238million gallons) per year.
Potencial reports that the plant's capacity is already the largest in Brazil. The expansion work will begin in 2025 and be completed by 2026.
The company believes that the additional production will satisfy the market demand, as the new law is anticipated to increase the blend of biodiesel with diesel from 14% to 25% by 2035.
KEY QUOTES
In a Tuesday statement, Arnoldo Hammerschmidt, the head of Grupo Potencial said: "The energy transformation is an irreversible movement around the world."
"Our country has made significant progress in ensuring legal stability, predictability of investment in the sector, and, therefore, stability in our mix of energy."
(source: Reuters)
