An agreement has been signed between Maire Tecnimont subsidiary NextChem and biofuels producer Essential Energy USA for the construction of a renewable diesel facility in South America, Maire Tecnimont announced on 15 February.

Due to start operation in 2023, the biorefinery would produce 200,000 tonnes/year of renewable diesel from advanced bio-feedstocks, the company said.

The biorefinery will process natural oil, waste vegetable oils and tallow into hydrogenated vegetable oils (HVO) also known as renewable diesel.

"Our business in the biofuels sector and in particular on the renewable diesel segment is gradually growing and South America is a very interesting area for us,” said Maire Tecnimont Group and NextChem CEO Pierroberto Folgiero.

“Low carbon mandates in North America and Europe will drive strong demand and premium pricing.”

Maire Tecnimont heads an industrial group which is active in global natural resource conversion market and operates in 45 countries through 50 companies. Its subsidiary NextChem operates in the green chemicals and technologies sector in support of the energy transition.

Essential Energy USA is a leading biofuels producer in South America.