March 27 (Bloomberg) --Camera Agroalimentos SA, a Brazilian agricultural company, is planning a 20 million-real ($11 million) factory to make a catalyst needed to produce biodiesel as demand for the renewable fuel increases.
The plant will open by next year and will initially produce 15,000 metric tons of sodium methylate a year, Joao Artur Manjabosco, manager of biodiesel and co-products at Santa Rosa, Brazil-based Camera, said today in a telephone interview. The company may eventually double the output.
Camera expects Brazil to double the amount of biodiesel it requires oil companies to mix with regular diesel fuel to 10 percent by 2020 to diversify its energy supply and cut fossil fuel imports, Manjabosco said.
“The government has been discussing a raised blend for some time,” he said. “Even without a higher blend, demand for biodiesel is increasing.”
Biodiesel consumption will increase by about 8 percent to 2.8 billion liters (739 million gallons) this year because the country’s fleet of heavy vehicles that run on diesel is increasing, he said.
Camera, which owns two biodiesel plants in the state of Rio Grande do Sul, will use a third of the catalyst plant’s output internally and will sell the remainder to nearby producers, he said. The company will buy sodium, a key raw material for sodium methylate, from DuPont Co. (DD:US)
Brazil’s southern states of Santa Catarina, Parana and Rio Grande do Sul produced about a third of the nation’s biodiesel last year, he said.
Camera is Brazil’s eighth-biggest producer of biodiesel and may sell shares in a public offering in 2014, he said.
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