ECB Group and bp enter into advanced biofuels off-take deal
Brazil-headed biofuels major ECB Group has announced that it has reached an agreement with global oil, gas, and energy major bp plc to supply over 1 billion litres of advanced biofuels from its Omega Green biorefinery that is currently under construction in Paraguay.
Delivery of renewable diesel and renewable jet fuel from the greenfield Omega Green biorefinery in Paraguay is expected to commence in 2024. The ECB Group is already Brazil’s leading producer of conventional biodiesel with an annual capacity of 828 million litres.
With this contract, signed on January 5, 2021, the group will position itself as the leading producer of advanced biofuels in the Southern hemisphere and the leading supplier of bp on the South American continent.
This deal with a major Brazilian biodistillate producer is bp’s first significant purchase of biodistillates in South America and provides a strong platform for growth in the region. Together with our other biofuel interests in the region, and in line with our strategy, it allows us to offer low carbon fuel to our customers in both the Road transport and aviation sectors, commented Carol Howle, bp’s EVP Trading & Shipping,
According to ECB Group, the multi-year contract represents an important next step towards reducing greenhouse gas (GHG) emissions in Paraguay and internationally.
We are proud of this agreement with an organization like bp, which is so important in the energy sector and aims to be a net-zero company by 2050 or sooner and to help the world get to net zero as well. ECB Group believes that biofuels represent the best option for the energy transition the world needs to make, said Erasmo Carlos Battistella, CEO of the ECB Group.
Being built in Villeta, on the banks of the Paraguay river just outside the Paraguayan capital Asunción, the US$800 million Omega Green will have a total nameplate production capacity of 20 000 barrels per day, producing a mix of advanced biofuels including renewable diesel, renewable jet fuel, and green naphtha.