September 4, 2008

IBI Acquires Second Biodiesel Plant in Argentina

Integrated Biodiesel Industries has acquired a new biodiesel process unit as part of its second plant in Argentina. The new plant will have a production capacity of 50,000 metric tons per year and is located in Alvear Industrial Park, on the south of the city of Rosario.

The plant is located five kilometers from the closest Parana River's export terminal. The new plant will replace the one planned for the Port of Rosario facilities. The new process unit to be installed in this plant uses a second-generation biodiesel production technology which has no reactors or moving parts.

The technology was jointly developed by Integrated Biodiesel Industries (IBI) and an undisclosed Brazilian supplier. IBI might decide to license the technology at a later date.

The new plant will also feature a dry biodiesel purification process and may operate with different vegetable or animal oil feedstocks, although it is planned to run on crude degummed soybean oil only.

The plant area will occupy 500sqkm, which is 20% of what a traditional biodiesel plant would require. The total investment is a little over $1 million, considered a fraction of the amount needed for a plant of such capacity.

Marcelo Lopes, CEO of IBI, said: "This new process technology is a considerable breakthrough in biodiesel production, totally in line with IBI's commitment to fast growth through intelligent deployment of its capital expenditures to maximize shareholder value."