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Argentina’s Biofuel Industry Sets New Records for 2011

Argentina’s Biofuel Industry Sets New Records for 2011

Argentinean biofuel production, domestic consumption and exports all set new records in the second quarter of 2011.
 
During the second quarter of 2011 Argentinean biofuel production averaged 209,486 tons per month, up 38 percent from the same period in 2010 as production over the period peaked at 219,000 tons in June, setting a new record, Argentina’s el Instituto Nacional de Estadística y Censos (National Institute of Statistics and Censuses) reported.
 
A major component of the production increase is related to rising domestic consumption, which reached consecutive record highs of over 66,000 tons during both May and June.
 
Argentina’s biodiesel industry expanded not only because of favorable conditions for growing soybeans, but also because of a new government B7 blending mandate, which requires fuel to be 7 percent biodiesel and 93 percent diesel, leading Argentinean biodiesel producers to heavily increase their investment in facilities to increase production.
 
Argentina is currently the world's eighth biggest biodiesel producer in terms of capacity, and second only to Brazil in Latin America. Last year global biofuels production increased 17 percent to reach a record high of 105 billion liters, up from 90 billion liters in 2009.

By. Charles Kennedy, Deputy Editor OilPrice.com



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