Mato Grosso is the vice-ranking national leader in biodiesel

November 30, 2009 - 07:48

Mato Grosso is the vice-ranking national leader in biodiesel - BRAZIL

Source: The Gazette

Mato Grosso was the second state that produced the most biodiesel in the first half of this year. In all, 170.845 million liters of product, 64.789 million / her unless the first place. Leadership in the period was the Rio Grande do Sul, which accounted for production of 235.634 million liters. In comparison with the volume produced in the first six months of 2008, when production totaled 141.307 million, there was an increase of 20.9% from one year to another. The data are from the National Petroleum, Natural Gas and Biofuels (ANP). As the agency's ability Mato Grosso (authorized) to produce up to 1.049 billion liters of biodiesel per year. Currently, 22 plants are in operation and at the last auction held by the NPA, the State was the biggest selling biodiesel, totaling 148.730 million liters equivalent to 25.7% of the offered amount, 575 million / l. Despite all the positive numbers for the sector, some entrepreneurs say that the industries are operating at idle, and hope that with the mixture of 5% (B5) of biodiesel to diesel, due to come into force on 1 January 2010 demand increases and capacity can be utilized fully.

The last auction, which sold more Mato Grosso, was held on 17th of this month, just to meet the requirement of the mixture. New auctions have been marked. The product sold must be delivered in the first quarter of next year. According to the president of the Union of Biodiesel Industries of Mato Grosso (SindiBio-MT), Silvio Rangel, the government can expand the current production, as it has supply of raw materials in abundance, since the biodiesel using oil soybean, cotton and animal fat. Other products such as jatropha and sunflower oil are also used in the production of biofuel, but on a smaller scale.

"We have good chances to take the lead in the national production of biodiesel, but we need more market conditions. The B5 is good news and we hope that gradually the percentage of biodiesel to diesel will increase, increasing the demand for the product," says the show currently the supply is greater than demand and that is inhibiting investment. Another peculiarity of this sector is related to consumers since the product purchased at auction by Petrobras and the Alberto Pasqualini Refinery (Refap), which ends up limiting the market and brings the discount price of the product in public sales.

With a production capacity in the possession of Mato Grosso, Rangel assesses the state sector is prepared to accommodate even the B10, which would be the addition of 10% biodiesel to diesel. The development would encourage more production, which promotes a cascade effect in the primary sectors, especially the production of raw material. This is because part of the product traded in the auctions should be from agriculture, which yields the plants called the Social Fuel Seal. "Biodiesel is good for several players manufacturers, factories and farmers, that are generated many jobs in factories and in the field," says the report that has data on the number of workers involved in the production process.

Investments - With the positive outlook for the next year, biodiesel producers are scrambling to gain more and more market. With so much competition and aiming to expand the participation in auctions, the owner of Bio Oil Biodiesel, Rodrigo Prosdócimo War, says that is an ongoing project to expand production of 3.6 million liters per year to 36 million liters / year which will result in a capacity 10 times greater than the current.

"We are awaiting authorization from the ANP to the start of construction and project everything will be ready by the first half of next year," says preferring not to reveal the volume of money that will be applied in the works. He justifies that the accounts had not been closed, but says that the party will most advanced technology to ensure the quality of the production process. Bio Oil, located in the Industrial District of Cuiabá, produces biodiesel from oil of cottonseed and animal fat. "We are using soybean oil in the moment, because this raw material is the high price now," he said adding that war is used product in the market value not less expensive costs.

The plant has participated in auctions organized by the ANP and the last event has negotiated 720 thousand liters of the product, whose delivery is scheduled for the first three months of 2010 in different batches.