After 7 months of planning and 19 months of construction, our largest current construction project, the new biodiesel plant in Paraguay, is nearing completion. After 7 months of planning and 19 months of construction, the plant was inaugurated in May 2023 and is now gradually starting production.
The plant will produce biodiesel from domestic soybean oil and - as a by-product - crude glycerine. It starts with a capacity of 100,000 tons/year, both in the soybean oil neutralization and in biodiesel production.
The future intention is to further expand to double the capacity, meaning a biodiesel production volume of 200,000 tons/year. Also in the pipeline are the expansion of our neutralization line to a capacity of 200,000 tons/year, the installation of a tallow processing line of 50,000 tons/year, and a glycerine refining line with a capacity of 50,000 tons/year. In this final stage, CREMER OLEO Paraguay will have created up to 120 new jobs, plus up to 500 indirectly in the region.
Reconvert Paraguay's energy matrix, by reducing our dependence on fossil fuels
CREMER OLEO is investing around USD 30 million in the construction of the biodiesel plant. What is the objective of the local management team and the corporate board of the German CREMER network it belongs to?
Paraguayan Chief Executive Officer Alejandro F. Basualdo explains: "Soybean oil from Paraguay has until now been exported in its entirety, while 100% of the country's fuel has been imported. The new plant will help reducing our dependence on fossil fuels, making both a valuable contribution to the country's industrialization and sustainability efforts.
The biodiesel market in Paraguay is a virgin market with enormous potential. Our reference was the success story of ethanol. It started with a 3% mandatory blending mandate and today, thanks to the investments made and the clear regulations, it has reached 27.5%. Regarding Biodiesel in Paraguay, this investment was pending in the past. With the opening of our new plant, this is no longer the case."
Family-owned CREMER holding is an international network specialiced in the trade, processing and transport of agricultural, raw and basic materials, as well as oleochemical products. CEO Dr. Ullrich Wegner says: "With this project, CREMER underlines its ambition to become a major player in the private biodiesel sector in Paraguay. Together with our operations in Argentina, Brazil, Mexico and Colombia, CREMER further extents its presence in Latin America."
Alejandro F. Basualdo has been working in the biodiesel sector at CREMER for 10 years.
Excellent location in Villeta
The new biodiesel plant is located in Villeta, Paraguay's largest industrial area near the capital Asunción. Villeta is strategically located with short distances to raw materials, major logistics corridors, oil companies and major ports. The new plant is only 20 km away from the fuel terminals and export ports for biodiesel. The largest soybean crushing plant in Paraguay, which supplies it with it's most important feedstock, soybean oil, is in the immediate vicinity, just 50 meters (!) away. A second plant is only 16 km away. So the location is extremely competitive for the production of biodiesel.
Certifications of CREMER OLEO Paraguay
With the amount of biodiesel produced, CREMER OLEO Paraguay will not only supply the local market but also the most complex and demanding international markets.
We will hold the following export certificates:
- ISCC
- EPA
- LCFS