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Speciality chemical company Evonik is set to increase sodium methylate production at its Rosario plant in Sante Fé province, Argentina, to raise biodiesel productivity and reduce production costs across South America, the company said on 12 July.

Evonik said it planned to increase annual production at the plant by some 50% from 60,000 tonnes to 90,000 tonnes.

“The sodium methylate plant is very important to Argentina and other countries in the region, with Brazil acting as a major export destination,” Evonik’s regional president for Central and South America Dr Hendrik Schönfelder said.

The move followed an announcement by the Brazilian government that it would be increasing mandatory biofuel blending quotas to 15% (B15) next year and was also in line with New Industry Brazil (NIB)’s policy of boosting the national industry and expanding biofuels’ share in the transportation energy mix.

Evonik said the increase in production at the Rosario plant was part of its global strategy and long-term vision to drive advances in the biodiesel sector.

“South America is a significant strategic growth region for us and we are pursuing our goal of being close to our customers, both in South and North America and in the Asian market,” Evonik executive board member Harald Schwager said.