Petrobras Biocombustivel to convert experimental biodiesel plant

Petrobras Biocombustivel and the government of Brazil’s Rio Grande do Norte state signed a letter of intent (LoI) for the conversion of an existing experimental biodiesel plant into a commercial facility. Petrobras Biocombustivel is the biodiesel subsidiary of Brazil’s oil and gas giant Petrobras. Upgrading of the experimental biodiesel plant will require investments amounting to BRL5.1 million (US$2.5 million). The converted facility will have a production capacity of 20 million liters (5.3 million gallons) of biodiesel when it begins operations in the first half of 2013. Located in the Guamare municipality, state of Rio Grande do Norte, the commercial facility will be able to meet most of the local biodiesel demand, which currently stands at around 22 million liters per year; the project will also provide jobs for an estimated 2,430 people living in the rural areas of the state. (July 11, 2012)