DuPont, JBS kick off sodium methylate production eyeing local biodiesel market - Brazil

US chemical company DuPont (NYSE: DD) and Brazilian JBS group have partnered to begin producing 30,000t/y of sodium methylate in Pirapozinho, Sao Paulo state, to supply the domestic biodiesel market, DuPont's executive manager of chemical solutions in Latin America, Vinicius Soares, told BNamericas.
The project is the result of the companies' joint investment, in which JBS provides the production facility and DuPont the technology and product commercialization.
The decision to begin producing sodium methylate, used as a catalyzer in the production of biodiesel, was made due to increasing demand in Brazil. "We surveyed several local companies and they were unanimous in naming the difficulties associated with importing the product, citing logistics and freight costs, for example," Soares said.
According to the executive, it was relatively simple to start producing sodium methylate in Brazil, as DuPont already has three facilities in the US. "DuPont has been producing sodium methylate for over 40 years. Turning the plan into reality was an easy and quick process," he added.
In October, DuPont and the Bertin group, which was later incorporated by JBS, partnered to identify and map potential consumption in Brazil. In January of this year, the companies decided to advance with the project and construction was concluded after only six months.
"The module technology used in the project allows for building and increasing capacities very quickly," Soares said. Output at the Sao Paulo facility could easily be doubled to 60,000t/y. "Depending on how demand develops, DuPont will decide whether it will increase capacity in Sao Paulo or start an entirely new project in the northeast, for example," he added.
Soares explained that the development of the product was focused on providing customers with custom-made solutions and logistics efficiency, in addition to offering a sustainable technology approach and quality standards, so the client could purchase the best product at the best price.
BIODIESEL IN BRAZIL
With the biodiesel market skyrocketing in Brazil, according to Soares, the outlook for sodium methylate consumption is very favorable for the coming years. "In 2007, the biodiesel market practically didn't exist. Only after a few years, we saw the biodiesel admixture reach 5% in the country," he said.
According to DuPont's estimates, the sodium methylate market will reach 45,000t in 2010, increasing to 56,800t in 2014, considering the current admixture policy in place.
"Demand for biodiesel and sodium methylate is expected to continue improving. The admixture is currently at 5%, but there have been requests from the entire chain to increase that to 10%," said JBS new businesses executive director Jose Luiz Medeiros.
For DuPont, the construction of the plant in Brazil is in line with the company's strategy for the Latin America region and the new capacity will contribute to regional sales. The firm is also evaluating expanding the sodium methylate business to Argentina and Colombia, Soares concluded.
By Fernanda De Biagio