Integrated Biodiesel Industries, Ltd (IBI) has signed a Letter of Intent with port operator Terminal Puerto Rosario S.A. (TPR) to build a 60,000 metric tons per year biodiesel plant inside its facilities in the city of Rosario, Argentina.

TPR will offer existent infrastructure such as land, storage tanks with 12,000 cubic meter capacity and loading equipment. The existing berths allow for both barge and vessel operations for unloading vegetable oil and shipping biodiesel.

"This is IBI's most important project as the port location will offer extremely low logistics costs, allowing us quick turnaround times and great operational savings," says Marcelo Lopes, IBI's Chief Operating Officer.

Dr. Jose Galetti, chairman of the Argentinean Federal Riverway Committee, adds: "We welcome IBI and its partners to the city of Rosario, which is becoming an important biofuel production area due to its proximity to soybean farms and the perfect logistics structure available in the many ports along the Parana River."

The total investment is estimated at US$ 3,5 million, which IBI will share with local investors while retaining management and marketing control. Revenues are expected to reach US$ 54 million per year at current biodiesel prices.

This plant adds to other IBI's developments in the same city such as the Diferal plant - where a minority interest has been recently acquired - and the other IBI plant set to break ground before the end of the year. A total capacity of 10,000 tons per month (equivalent of 11.2 million liters of diesel fuel on a monthly basis) will be reached when all three plants are up and running.

At current prices IBI expects revenues to exceed US$ 100 million on an annual basis once the plants are operational.

Last Updated ( Monday, 05 November 2007 )