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BASF to Expand Production Capacity for Biodiesel Production in Brazil

BASF announces the expansion of Biodiesel production capacity in Brazil

Germany: BASF SE, the largest global chemical producer, announced plans to increase the production capacity for its sodium methylate plant in Guaratinguetá, Brazil. The new capacity, which is anticipated to increase the overall production capacity by 30%, from 60,000 metric tons to 80,000 metric tons, will come onstream in 2020. Notably, sodium methylate is an efficient and dependable catalyst, which provides a sustainable solution for the production and use of biodiesel, meeting the requirements of engine manufacturers for high-quality fuels as well as lower emissions.

BASF ‘s site in Guaratinguetá, Brazil, is suited for the investment to supply the growing customer demand in Brazil and other South American countries. The site is near the leading biodiesel producers in Brazil, as well as close to Santos port, thereby providing logistic advantages for exports to the region. With the expansion, BASF expects to support the growth of its sodium methylate customers in Brazil, as Brazil is an important market for biodiesel and the corresponding catalysts. Customers’ demand and requirements have been evolving to achieve both environmental and economic strategy of the country, supporting the local agriculture and biofuels production. Alejandro Heine, Vice President, BASF Industrial Chemicals, South America, stated, “We will invest to join our customers in their fast growth and to support their future requirements. This will reinforce our commitment to serve them by providing a local and reliable supply of sodium methylate.”

According to TechSci Research, the announcement of opening a new plant in Brazil holds great importance as Brazil is a huge market for biodiesel as well as the corresponding catalysts. Moreover, the proactive implementation of biofuel policies in several nations including Brazil complements the company’s initiative of expanding its biodiesel production capacity in the country. Additionally, the rising demand for biodiesel in numerous end user industries including transportation, power generation, mining, agriculture, marine, among others would continue to drive the global biodiesel market in the coming years.


According to a report published by TechSci ResearchGlobal Advanced Biofuels Market, By Type (Biodiesel, Biobutanol, BioDME & Cellulosic Ethanol), By Region (Asia-Pacific, North America, Europe, Middle East & Africa & South America), Competition Forecast and Opportunities, 2013-2023”, the global advanced biofuels market is projected to cross USD 13 billion by the end of 2026, witnessing a robust CAGR of more than 42%, in value terms, during 2018-2023. High growth in the advanced biofuels market can be attributed to the increasing environmental concerns and rising energy security issues across developed as well as developing economies. In addition to this, the growing demand for cleaner fuels is primarily driving the global advanced biofuels market through 2023. Favorable regulations, policies and initiatives launched by governments across various nations such as Renewable Energy Directive (EU), etc., would further accelerate the consumption of advanced biofuels over the coming years.

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