German chemical company Evonik will increase its production capacity for the biodiesel catalyst, sodium methylate, at its Rosario, Santa Fe facility in Argentina from 60,000 to 90,000 tonnes.

“The increased capacity will be built in two stages and is expected to be complete in 2021,” Evonik said on 3 December, adding that its expansion was being driven by soaring biodiesel demand in Argentina and Brazil and several recent production capacity additions in the region.

“Confirmed higher mandates in Brazil such as the biodiesel blend increase from 11% to 15% by 2023, but also the competitiveness of biodiesel exports from Argentina throughout the world, drive our decision,” said Marcos Salgueiro, general manager at Evonik’s functional solutions business line in South America. “This is why we continue to invest in our plant, which is strategically located in the centre of the Argentinean soyabean and biodiesel production region.”

Evonik said it was also investing in infrastructure and logistics improvements in South America, including expanded storage solutions to ensure continuous supply reliability.

In addition to sodium methylate production in Argentina and the USA, Evonik said it also produced the biodiesel catalyst in Luelsdorf, Germany, mainly for the European and Asian markets.