Investment in Biofuels
Biofuels Investment in Colombia
Ethanol and biodiesel production in Colombia has been increasing over the past years due to the mandatory blend policy. Ethanol production reached 368 million liters in 2012; meanwhile in the same year the output of biodiesel was 489 thousand tons.
The permanent increase in the production of biofuels will be conducive to a surplus market; Colombia could meet the needs of those countries which don´t satisfy their domestic demand.
- Blend policy: Diesel and gasoline sold in Colombia must be blended with biodiesel and ethanol. The blend level is being increased in coming years (E8, E10, B8, B10).
- Price setting: The Ministry of Mining and Energy sets the price for biodiesel and ethanol each month which is one of the highest in the world. (Ministry of Mining and Energy)
- According to the “Life Cycle Analysis 2012” the ethanol produced in Colombia reduces the emission of GHG by 74% and the biodiesel reduces those levels by 83%. (EMPA and The Pontifical Bolivarian University)
- Biofuel exports to the United States and the European Union under a free trade agreement are seen as challenging and as an enormous opportunity.
- Future demand of biofuels in Colombia is expected to be higher in coming years as the blend policy increases. In order to cater to local demand, the production of ethanol and biodiesel must grow.
- Colombia has 7,4 million hectares of land which can be made available for planting biofuel crops.
- New and ongoing ethanol and biodiesel projects that require investment.
There are many regions in the country with a great potential for the Biofuel sector such as:
Important Corporations Have Chosen Colombia to Conduct Their Business Operations:
- Mitsubishi (Japan): has become partner with Ecopetrol in the project Bioenery (Ethanol Porduction, 2012).
- Merhav (Israel): has invested in the development of an ethanol production project in the North area of the country.
These are only some of the reasons to invest in the Biofuel industry, we invite you to investigate in detail these and more reasons why Colombia is the destination for your projects.
Investment Specialist: Carlos Sánchez
At PROCOLOMBIA we cater to international companies, large enterprises and foreign government agencies interested in investment in Colombia.
Due to the nature of our activities, we do not attend to individual or personal investment requirements.
We suggest you review our Frequently Asked Questions on Investment in Colombia before you send us your inquiries.
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