06/11/2024 (Oils & Fats International) - Brazil’s privately owned Grupo Potencial is planning to invest BRL 600M (US$108.86M) to increase biodiesel output at one of its plants, according to a Reuters report.

Potencial’s investment would give the facility the world’s largest capacity for soyabean oil-based biofuel, the 8 October report said.

The company’s move followed Brazilian President Luiz Inacio Lula da Silva’s introduction of the Fuel of the Future law on 8 October to increase biofuel use in local markets,

The regulation promotes the gradual increase of the biodiesel blend into diesel and establishes national programmes for green diesel and sustainable aviation fuel (SAF), while also providing incentives for biomethane and other initiatives.

“Our country is making significant progress towards ensuring legal security, predictability of investments in the sector and, consequently, stability in our energy mix,” Grupo Potencial head Arnoldo Hammerschmidt said in a statement.

Grupo Potencial said the plant, located in Paraná state, would increase its annual biodiesel production capacity to 1.62bn litres (428M gallons) from 900M litres (238M gallons).

The plant’s current capacity makes it the largest unit in Brazil, according to Potencial. Expansion work is scheduled to begin in 2025, with completion scheduled for 2026.

The company said the additional production would meet market demand as the new law would increases the biodiesel blend in diesel – currently at 14% - by 1% annually from 2025 to reach 20% by 2030.

https://www.ofimagazine.com/news/brazils-grupo-potencial-set-to-invest-us-109m-in-biodiesel-plant