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Argentina Awards Two More Ethanol Contracts

31 January 2012

ARGENTINA - Argentina's Energy Secretary has authorised two more companies to supply ethanol to oil refiners for mixing into gasoline as it seeks to increase biofuel consumption, it said Monday.

Bahia Blanca-based Bahia Energias Renovables received approval to supply 100,000 cu m/year of ethanol and Buenos Aires-based Agroctanos won authorization to supply an additional 19,000 cu m/year for a total of 83,000 cu m/year.

The companies can start delivering these amounts to refiners on January 1, 2014, according to a report published in the Official Bulletin, reports energy company Platts.

The report did not specify the feedstock for the ethanol.

Most of the country's ethanol comes from sugarcane, yet corn is gaining attention in Argentina. The country is one of the world's biggest growers and exporters of corn.

Agroctanos will use corn as feedstock for making ethanol at a plant in Cordoba, a province at the heart of the country's corn belt. The Energy Secretary said in the resolution that the government is promoting biofuel production to help diversify energy supplies and boost energy production.

Argentina launched E3 and B5 mixes in April 2010, soon increasing the biodiesel mix to 7 per cent.

TheCropSite News Desk

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