In a significant move to bolster the biofuel industry, Brazilian company Grupo Potencial has announced a substantial investment of $108.86 million (€98 million) aimed at expanding the biodiesel production capacity of its facility in Parana state. This initiative will position the plant as the world’s largest producer of soy oil-based biodiesel.
The announcement of this investment coincides with the Brazilian government’s initiative to enhance the role of biofuels within the national energy landscape. Recently, President Luiz Inacio Lula da Silva signed legislation to establish a gradual increase in the biodiesel blend in diesel fuels, part of a broader strategy to promote sustainable energy practices.
With this expansion, Grupo Potencial plans to boost its annual biodiesel output from 900 million liters (238 million gallons) to an impressive 1.62 billion liters (428 million gallons). The facility, which currently holds the title of the largest biodiesel producer in Brazil, is set to commence expansion activities in 2025, with the project anticipated to reach completion in 2026.
The company anticipates that the enhanced production capacity will meet the growing market demand, as the new regulation aims to raise the biodiesel blend with diesel from 14% to 25% by the year 2035.
Arnoldo Hammerschmidt, head of Grupo Potencial, commented on the development, stating, “The energy transition is an irreversible global movement. Our country is making significant progress towards ensuring legal security, predictability of investments in the sector and, consequently, stability in our energy mix.”
With this initiative, Brazil is positioning itself as a leader in the biofuels market, taking significant steps towards a more sustainable energy future.
