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 metric tons. The increased capacity will be built out in two stages and is expected to be complete in 2021. 

Evonik’s expansion of biodiesel catalyst production is being driven by soaring biodiesel demand in Argentina and Brazil and follows several recent biodiesel production capacity additions in the region. “We are following our customers’ investments with our own to ensure ample future supply for this important renewable fuel, which helps to reduce emissions,” said Elias Lacerda, Evonik’s regional president of Central and South America.

 “Confirmed higher mandates in Brazil such as the biodiesel blend increase from 11 to 15 percent 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 efficient, reliable plant, which is strategically located right in the center of the Argentinean soybean and biodiesel production region.”

Andreas Kripzak, Evonik’s vice president and general manager of the Americas, said, “This investment, coupled with the ongoing expansion of our sodium methylate plant in Mobile, Alabama, demonstrates our commitment to our core market of the Americas.”

Evonik is also investing in infrastructure and logistics improvements in South America, including expanded storage solutions in the region to ensure continuous supply reliability to its customers.

In addition to sodium methylate production in Argentina and the U.S., Evonik also produces the biodiesel catalyst in Luelsdorf, Germany, mainly for the European and Asian markets.

“This decision fits perfectly into our global strategy and strengthens further our market leadership position for alkoxides,” said Alexander Weber, Evonik’s global head of the alkoxides and potassium derivatives product line.