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| Brazil: IBI Initiates Discussions for Its Third Plant in Argentina
30
April
2008
Integrated Biodiesel Industries, Ltd (IBI) announced today that it has reached preliminary agreement with Imperial Chemical Industries of Argentina (ICI Argentina) to lease for 15 years one of their dormant chemical plants. Subject to certain conditions and final agreement IBI will take over operational responsibility of the plant and expects to start up operations by November 2008. As part of the agreement IBI will absorb all necessary costs associated with the retrofit of the plant to produce biodiesel. After the engineering work is completed the plant will have annual production capacity of 50,000 tons of biodiesel per year.
This plant is located at ICI Argentina's main industrial site in San Lorenzo, situated 300 Km North of Buenos Aires. The site has its own tank farm and deep water port on the Parana River allowing access to commercial tanker ships.
The engineering work will take about 6 months and is estimated to be a fraction of the costs otherwise necessary to build a comparable production plant from scratch. The new plant will be engineered in such a way that it is capable of using not only soybeans but also other crops like sunflower, crambe and jatropha.
Marcelo Lopes, CEO of IBI, states: "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. We expect the plant to be in operation as early as November 2008."
At current world market prices the new plant will bring in about US $70 million in revenues on an annual basis. Factoring in the Port of Rosario plant currently in development in combination with Diferoil, which is coming online in a few days, IBI will now reach a total production capacity of at least 135,000 metric tons by the end of 2009.
About Integrated Biodiesel Industries, Ltd
Integrated Biodiesel Industries, Ltd (IBI) is a biodiesel company with activities in Brazil and Argentina. The company is focused on downstream operations (production and distribution) and developing an international base of end consumers such as truck fleet operators, railway companies and oil-fueled power plants. At current prices IBI conservatively expects revenues of at least US $50 million in 2008 and US $250 million in 2009.
Organization name: Integrated Biodiesel Industries, Ltd (IBI)
City: Sao Paulo
Country: Brazil
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