Santander and Bolivar Depts To Export 40,000 T Biodiesel

Colombia's northern departments of Santander and Bolivar are seen to start exporting nearly 40,000 tonnes biodiesel a year to the United States and the European Union within the next 16 months, local media reported on April 11, 2008.

Within this period, three palm oil mills and a biodiesel plant will be built in the Magdalena Medio region, as part of a recently signed alliance between U.S. Texas Biodiesel Corp, Colombian Industrias AVM SA and local palm growers' associations.

The mills will be built in Cantagallo, Sabana de Torres and San Pablo with a capacity to process 6.0 tonnes per hour, 10 tonnes per hour and 20 tonnes per hour, respectively.

U.S. Texas Biodiesel Corp will invest $80 mln (50.6 mln euro) in the project, according to AVM market director, Cesar Gomez. A total of 45 pct of the sum will be allocated for the plants' construction and for improvement of the transport infrastructure. The remainder will be spent on technical improvements of the cultivation.

The plants already have secured supply of raw material from over 31 ha of palm plantations and an additional 20,000 ha should be planted in the next years.

Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: April 14, 2008