BSBIOS Paraguay, an ECB Group company, has announced that it has signed a Memorandum of Understanding (MoU) with a leading fuel distributor and retailer in Paraguay for investment in the Omega Green biorefinery project that is being built in Paraguay by BSBIOS Paraguay.
Launched in February 2019, the US$1 billion Omega Green biorefinery project is the largest foreign private investment in Paraguay’s history. It will produce renewable diesel and sustainable aviation fuel (SAF) that will be exported to the United States, Canada, and European Union (EU) countries.
The MoU was signed with the leading business group in the Paraguayan fuel distribution area, Copetrol, with the purpose of the company becoming a shareholder of the first and largest second-generation advanced biofuels plant in the Southern Hemisphere.
Copetrol is the main company of the Zapag business group, a leader in the importation and distribution of petroleum fuels in Paraguay operating 600 service stations, under two brands, throughout the country.
The group is also developing Paracel, a 1.5 million tonnes per annum greenfield eucalyptus pulp mill to be built in Río Paraguay, Concepción region in northern Paraguay. The estimated US$3.8 billion investment is the single largest private enterprise investment in the country’s history.
Erasmo Carlos Battistella points out that the investment plans are in full swing.
It is an honor to count on Copetrol in this venture, a leading business group in Paraguay in the fuel distribution segment. This partnership will strengthen the project and reinforce Omega Green’s commitment to the country. Having a Paraguayan company as a partner, for us who are arriving in the country, brings us even more security”, highlighted Battistella.
The president of Copetrol, Blas Zapag, was very enthusiastic about the negotiation.
I am here to reaffirm our commitment with the certainty that we are sealing a partnership for a promising enterprise for our country, Paraguay, Blas Zapag said.
The structuring of the negotiation was conducted by financial advisors. Representing BSBIOS are Barclays, Santander, UBSBB, and Martinelli Atria. The legal advisor for BSBIOS was Veirano Advogados Associados, and for the Paraguayan company, Vouga Advogados.
Site preparation underway
The infrastructure works for the mega-complex began in November 2021, with the definition of internal and access roads, as well as all the fencing of the area that will house the project.
A base is also under construction for the installation of the workshop and deposits of the company responsible for preparing the land for the start of construction. The operation of the biorefinery is planned for 2025.
