Argentina to get 75M gallon biofuel plant

Cupertino, Calif.-based AE Biofuels (OTC: AEBF) said it has entered a joint development agreement with DS Development to build, own and operate a 75 million gallon per year biodiesel plant near Rosario, Argentina.

Soy oil is to be the primary feedstock, since Argentina is one of the world’s largest producers and exporters of soy oil, according to the companies.

The biodiesel facility is to be built by De Smet Engineers & Contractors, and is expected to have a feedstock capacity of 250,000 tons per year, with anticipated production of 75 million gallons of biodiesel and 25,000 metric tons of glycerin annually.

According to AE Biofuels, the glycerin produced at the Argentina plant may be processed into pharmaceutical-grade glycerin at the company’s Kakinada, India plant.

Earlier this year, AE announce it would begin construction on a cellulose and starch ethanol commercial demonstration facility in Butte, Montana. The company said it would be fully operational by second quarter of 2008, but no official announcements have yet been made (see AE Biofuels starts building pilot cellulose plant).

Separately, Brazil's Integrated Biodiesel Industries recently said it would open its third biofuel plant in Argentina and begin operation as early as November 2008 (see IBI to build third Argentina biodiesel plant).

In a statement today, AE Biofuels said construction of the plant is subject to obtaining necessary project financing.

AE is to own 90 percent of the project. Plant permits and feedstock agreements are in place, the company said. Plant completion is expected in late 2009.

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