July 31, 2006
Venezuela's PDVSA eyes biodiesel output in 3 years

(Reuters) - "Venezuela state oil company PDVSA is studying Brazilian biodiesel technology with an eye on possible own output three years from now, PDVSA director Igor Martínez.

He told reporters PDVSA had already adopted technology to produce ethanol with output due to start next year.

'The biodiesel plans are for later on, but I believe that in a three years' time we can be producing, too,' he said on the sidelines of Hart's World Refining & Fuels Conference in Rio de Janeiro.

'We signed commitments to study Petrobras technology,' he added. Brazil's state-run oil company Petrobras is an active promoter of biodiesel, which is blended into regular diesel at a 2:98 ratio on voluntary basis.

The 2 percent blend will become compulsory from 2008 or even next year, according to recent government plans. Brazil will then switch to a 5 percent compulsory blend, possibly as soon as 2010.

Martínez did not provide production or demand estimates in Venezuela, but said the country was preparing its agriculture sector to provide the necessary raw materials. Biodiesel is produced from soybeans and other oil-containing plants.

As for ethanol, Venezuela has imported 150 million liters of the fuel sold by Petrobras this year. Venezuela plans to build 15 ethanol plants by 2010".