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Oil & Gas / South America

BASF to build second biodiesel chemical plant in South America

February 08, 2012
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LUDWIGSHAFEN, Germany — Chemical giant BASF SE announced it may start building its second factory in South America for sodium methylate, a catalyst used for biodiesel production, within two years, Bloomberg reported.

The plant will most likely be built in Brazil or Argentina.

According to the story, South American countries are seeking to cut their dependence on fossil fuel imports by mixing diesel with fuel derived from crops, creating markets for companies that supply ingredients necessary for its manufacture.

“This market will grow with increasing fuel demand,” said Kerstin Dunnwald, head of business management for inorganic chemicals at BASF. “There are discussions of increasing existing blends.”

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