IBI to build third Argentina biodiesel plant

Sao Paulo, Brazil-based Integrated Biodiesel Industries announced today that it would build a third plant in Argentina, with plans to retrofit an existing chemical plant instead of building a new facility from scratch.

The company said it reached a preliminary agreement to lease a dormant chemical plant from Imperial Chemical Industries of Argentina for 15 years.

"We will have a good sized plant in half the time and a fraction of the cost it would take to build a new one," said Marcelo Lopes, CEO of Integrated Biodiesel.

"We expect the plant to be in operation as early as November 2008."

After the engineering work is completed the plant is expected to have an annual production capacity of 50,000 tons of biodiesel per year, according to Integrated Biodiesel.

The company said the plant is located at Imperial Chemical's main industrial site in San Lorenzo, 300 kilometers north of Buenos Aires.

Integrated Biodiesel said the site has its own tank farm and deep water port on the Parana River allowing access to commercial tanker ships.

The company said the new plant would be engineered to be able to use soybeans, sunflower, crambe and jatropha as feedstocks.

At current world market prices, Integrated Biodiesel said the new facility could bring in approximately $70 million in revenues on an annual basis.

Integrated Biodiesel said it expects to reach a total production capacity of at least 135,000 metric tons by the end of 2009.

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