Biodiesel Production In Argentina

 
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Introduction

Biodiesel production in Argentina has turned into an attractive investment opportunity. In fact, it is driving the attention of the global business community, as portrayed by CNN Money: one of the best business ideas of the world in 2006.1 The biodiesel industry in Argentina has earned such title mainly due to the large availability of natural resources and macroeconomic factors that, in conjunction with recently enacted federal and provincial legislation, make easy, inexpensive and potentially profitable to tap into the local biodiesel market.

What is biodiesel?

Biodiesel is a processed fuel derived from biological sources (such as soybean oil), that can be used in unmodified diesel-powered vehicles and machinery. The use of biodiesel generates less environmental pollution and represents a viable alternative to the already sensitive depletion and skyrocketing prices of fossil energy sources, such as gas and petroleum-based oil.

What are the advantages of biodiesel over fossil diesel?

In comparison to fossil diesel, biodiesel has the following ecological, economical and mechanical benefits2:

a) Ecological benefits

Biodiesel comes from a renewable resource.

Biodegradable.

Less polluting than mineral diesel.

Reduces particles (smoke) by more than 50 % and also carbon dioxide ("CO2") emissions.

Free of sulfur, benzene and potentially carcinogenic substances.

Includes products derived from the residue of its process, such as glycerin and organic fertilizers.

b) Economical benefits

The production of biodiesel is encouraged by important tax incentives and exemptions at the domestic and international level.

It gives independence as regards unavailability and variation of prices of the diesel oil fossil.

Production is possible in a complete cycle (harvest - seed pressing - production of biodiesel), reducing costs and intermediaries.

The marketing of by-products (expeller of soybean, sunflower, etc. as base for balanced cattle food/ glycerol 90 % purity) constitutes an incidental, profitable business and allows diversifying risks.

c) Mechanical benefits

Biodiesel increases the efficiency and duplicates the life of the engine, improving its ignition and lubrication.

High Flash point at approximately 130 °C - (fossil diesel around. 70 °C).

It possesses an important lubricant power, and this is the reason why it can be considered an additive to improve the lubrication.

Why investing in biodiesel in Argentina?

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