Argentina has the fourth largest producer of biodiesel

Argentina is gaining greater prominence in the world as a producer of biodiesel, as the development of this fuel grew by leaps and bounds in recent years. In 2010, increased by 51%, by adding about 1.9 million tonnes against 1.25 million in 2009, when it had grown by 31%, according to the House Renewable Energy Argentina (Cader), which includes companies in an industry that moves u $ s 1,900 million.

Thus, the country became the 7 th place worldwide in 2007 to 5 th in 2009. And last year went up another step, to be in 4 th place, just behind Germany, France and Brazil, and moved to the United States to 5 th position. U.S. production fell because they took the grant of U.S. $ s 300 per tonne, when the international price is around u $ s 1000?, Said Carlos St. James, president of Cader. By 2011, provide at least 2.2 million tonnes of local production.

Industry works to just over 85% of installed capacity. This year will add two more plants in Santa Fe One of Cargill, 240,000 tons of capacity, and a Unitec Bio Corporation (America, Eduardo Eurnekian), which will double its capacity, with 220,000 tonnes, said St. James. Thus, Argentina extended its capacity by 24%, to 3.08 million tons at the end of this year.

99% of biodiesel made from soybean oil. Thus, 80% of installed capacity is in the province of Santa Fe, since they are the big oilers with nine plants in total which provide 56% of the total. Another 24% are independent companies that must buy the raw material to the oilers, and 20% for small producers. The remaining capacity is located in the provinces of Buenos Aires (8%) and Santiago del Estero (7%), among others.

We have many competitive advantages to produce biodiesel, we have an average of 108,130 tons capacity per plant, the largest worldwide. Large oilers not only availability of raw materials, but also a port next to the plant, which are very efficient, he said.

Argentina exports 68% of production, with Europe being the main destination, while 32% goes to the local market, under which oil companies should cut the diesel with 7% of national biodiesel. This year, the court set for diesel could rise from 7% to 10%. And it created a new market by a government move to generate energy from renewable sources instead of oil or natural gas. So demand could grow to 3.2 million tons, said St. James. The only fear is that the EU, the main buyer, closing the entrance to protect the local biodiesel industry.

Increases the cut-off

From the first quarter of 2011 the national government extends the current 7% to 10% cut diesel with biodiesel which came into force effectively from April 2010.

"From the cut of 7% the Ministry of Energy is now able to be determining the application for the first quarter of this year of a 10% cut," said Claudio Molina, Executive Director of the Argentina Association of Biofuels and Hydrogen ( Aabh).

Only two companies (Shell and Petrobras) already operating in the country with the mandatory cut of 7%, while the other companies did so partially.

"At present our country produces 2.50 million tonnes of biodiesel (based on soybean oil), so we're with the production capacity needed to supply the entire domestic market even with the 10% cut "said Molina.

The measure also help reduce oil imports, will improve the payment capacity of the local oil industry operating in the business of biofuels (nucleated in Carbia).

In the first nine months of 2010 were reported external sales of biodiesel by volume of 1.106 million tonnes versus 974,687 tonnes in the same period in 2009 (an increase of 13.5%).

"By 2015 we hope to have a biodiesel production exceeding 5.50 million tons, so production will be able to supply and absorb a cut even above 10% ', considered Molina.

"We assume that by then the cut could be around 20%, although we know that investments in the sector continue to grow and everything will also depend on market movements," he added.

The national government in February of 2010 orchestrated the distribution of a quota of 859,820 tonnes of biodiesel from 19 biofuel producing companies to meet the mandatory 5% cut in diesel provisions of Law 26,093. In mid-July took effect extending the mandatory cut to 7%.

Northern Power Journal