Brazil’s privately held Grupo Potencial is set to invest BRL 600 million (US$108.86 million) to boost biodiesel production at one of its plants, Reuters reported.
This investment will make the plant the largest producer of soyabean oil-based biodiesel in the world, according to the October 8 report.
The move comes shortly after Brazilian President Luiz Inácio Lula da Silva introduced the “Fuel of the Future” law on October 8, aimed at expanding biofuel use in the domestic market.
The new legislation mandates a gradual increase in the biodiesel blend in diesel, establishes national programs for green diesel and sustainable aviation fuel (SAF), and offers incentives for biomethane and other green energy initiatives.
Grupo Potencial’s CEO, Arnoldo Hammerschmidt, commented, “Our country is making significant strides toward providing legal security, investment predictability in the sector, and, as a result, stability in our energy mix.”
The company announced that its facility in Paraná state will raise its biodiesel production capacity to 1.62 billion liters (428 million gallons) annually, up from the current 900 million liters (238 million gallons).
Currently the largest biodiesel plant in Brazil, the expansion is set to begin in 2025, with the goal of completion in 2026.
The additional production capacity will help meet market demand as the new law gradually increases the biodiesel blend in diesel – from the current 14% to 20% by 2030, with annual increments of 1% starting in 2025.
