Bolzan to build second biodiesel plant

In Argentina, Grupo Bolzan is planning to construct its second biodiesel production plant in the region.

Once operations are underway at the site, the new facility will have an annual output capacity of 16 million gallons a year from soyabean oil.

The project requires an investment of $8 million (€5.6 million) and Bolzan is currently seeking a loan to help fund the development from Banco de Inversion y Comercio Exterior and Nuevi Banco De Entre Rios.

The plant is expected to come online by mid-2012.

The news comes as Argentina is close to implementing a B7 mandate. The country is also expected to increase this blend to 10% biodiesel in the near future, however it is not yet known when this will happen.

'The government is waiting to see the effect the 7% blend has on engines,' explains Matias Bolzan, the company's commercial director. 'I don't see any reason why they wont go ahead with the increase later this year.'

According to Bolzan, the company is already consuming B100 in its larger trucks and has not yet experienced any technical issues. 'The newer the motor, the better it works,' he says.