ARGENTINA.
ETHANOL.
Bio-diesel from Argentina, now makes up 10% of the worlds total supply and is still increasing.Figures released for the Argentine Renewable Energies Chamber, on Friday show Argentina as the third largest producer in the world, after the European Union and the United States.
There are 18 different companies producing bio-fuels in Argentina, including Louis Dreyfus Commodities Argentina, Unitec Bio SA, Explora and Molinos Rio de la Plata SA, by the end of 2009, there will be an additional 16 companies producing the product.
The largest purchaser of Argentine bio-fuels, is currently the USA, which takes approx 90% of production.
The problems with the US trade, is that the bio-fuels have a small amount of diesel added, and then the product is re-exported to the EU and the Americans claim $1 dollar in subsidies.This situation has caused the European Bio-diesel Board, to file a complaint to the European Commission, which will be heard and a decision handed down in March 2009.
The domestic market in Argentina, will account for 800,000 tons of bio-diesel and 250,000 tons of ethanol by the year 2010.The government has been alarmed at the demand for bio-fuels, having an impact on the food market and prices, however since the end of the commodity boom things are back on a firm footing again, for the bio-fuel industry receiving government support.
