Brazil's Grupo Potencial has revealed an investment of $108.86 million (€98 million) to increase biodiesel output at one of its plants giving the facility the world's largest production capacity for soy oil-based biofuel.
The investment was announced amid efforts by Brazil's government to increase the footprint of biofuels in local markets, Reuters reported.
President Luiz Inacio Lula da Silva signed a bill to promote the gradual increase of biodiesel blend into diesel, among other actions.
Grupo Potencial said the plant, located in Parana state, will increase its annual biodiesel production capacity to 1.62 billion litres (428 million gallons) from 900 million litres (238 million gallons).
The plant's current capacity already makes it the largest unit in Brazil, according to Potencial. Expansion work is scheduled to begin in 2025, with completion scheduled for 2026.
The company believes the additional production will meet market demand as the new law is expected to increase the biodiesel blend with diesel to 25% by 2035, from the current 14%.
"The energy transition is an irreversible global movement," Grupo Potencial head Arnoldo Hammerschmidt said in a statement on Tuesday.
"Our country is making significant progress towards ensuring legal security, predictability of investments in the sector and, consequently, stability in our energy mix."
