{"id":50055157,"date":"2022-06-21T16:03:07","date_gmt":"2022-06-21T15:03:07","guid":{"rendered":"https:\/\/stage.dialogochino.net\/?p=55157"},"modified":"2023-07-07T17:06:37","modified_gmt":"2023-07-07T16:06:37","slug":"55157-paraguay-biofuels-build-south-america-largest-plant","status":"publish","type":"post","link":"https:\/\/dialogue.earth\/en\/business\/55157-paraguay-biofuels-build-south-america-largest-plant\/","title":{"rendered":"Paraguay wants to build South America\u2019s largest biofuels plant"},"content":{"rendered":"<p>In Paraguay, the announcement of a biofuels plant set to be the largest in South America has divided the country. While the company behind it and the government are keen to highlight the potential economic impacts of the project, and claim the soy used to fuel it will not be linked to deforestation, environmental organisations have questioned the commitments.<\/p>\n<p>The <a href=\"https:\/\/www.idom.com\/en\/project\/omega-green-project-renewable-diesel-hvo-jet-fuel-spk-plant\/\">Omega Green<\/a> plant aims to produce renewable diesel (also known as hydrotreated vegetable oil, or HVO) and renewable aviation fuel, as well as processing by-products, including propane, butane, naphtha and acid gases. It is expected to start operating in 2025 and will be located near the city of Villeta, 45 kilometres south of the capital, Asunci\u00f3n.<\/p>\n<div class='block--pullout-stat block--pullout-stat--float cd-shortcode--factbox'>\n                <p class='block--pullout-stat__title'>What are biofuels?<\/p>\n                <div class='block--pullout-stat__content'>\n                    <br \/>\nFuels produced from raw materials of agricultural origin or organic waste, for which they are considered renewable. Some of the most used are biodiesel and bioethanol.<br \/>\n\n                <\/div>\n            <\/div>\n<p>Biofuels are considered renewable fuels as they are produced from raw materials of agricultural origin or organic waste. In the case of Omega Green, the output will be produced from animal fats, used cooking oils and soybeans.<\/p>\n<p>Several airlines have already begun <a href=\"https:\/\/intelligent-partnership.com\/aviation-biofuels-which-airlines-are-doing-what-with-whom\/\">developing and testing<\/a> biofuels, and blendings with standard fuels, in a bid to reduce their greenhouse gas emissions. This is expected to lead to a massive increase in demand for palm and soybean oil, with the aviation industry potentially the largest driver of a shift that could generate <a href=\"https:\/\/www.regnskog.no\/en\/news\/biofuels-add-fuel-to-forest-fires\">7 million hectares<\/a> of deforestation globally by 2030.<\/p>\n<p>The project in Paraguay is being promoted by the Brazilian renewable energy company BSBIOS, part of the <a href=\"https:\/\/www.ecbgroup.com.br\/en\/Home\">ECB Group<\/a>. The company was founded in 2011 by Brazilian businessman Erasmo Carlos Battistella, <a href=\"https:\/\/stay-grounded.org\/content\/uploads\/2022\/04\/EN_agrofuels_case-study_2022.pdf\">dubbed<\/a> \u201cthe king of biodiesel\u201d. Some of the company\u2019s businesses have been <a href=\"http:\/\/www.mpf.mp.br\/atuacao-tematica\/ccr5\/revisao\/pautas-de-reuniao-1\/docs-pautas-de-reuniao\/pautas2015\/864-06-05-2015.pdf\/view\">denounced<\/a> for undermining the interests of the Brazilian people.<\/p>\n<p>Although the Paraguayan development was announced in 2019, construction has been delayed by the Covid-19 pandemic, but is now scheduled to start in December this year, and with an investment of US$1 billion. A spokesperson for the company told Di\u00e1logo Chino that it had chosen Paraguay because of its legal security, financial stability and low energy costs.<\/p>\n<h2>The location of the plant<\/h2>\n<p>The plant will be located in an industrial complex of 384 hectares, according to the environmental impact assessment study, to which Dialogo Chino had access to. The land was acquired by the company from former president Luis \u00c1ngel Gonz\u00e1lez Macchi (1999-2003), according to Teodosio G\u00f3mez, mayor of Villeta.<\/p>\n<p>Industrialisation in the Villeta area has brought parallel processes of dispossession of land and a loss of community, according to a <a href=\"https:\/\/stay-grounded.org\/content\/uploads\/2022\/03\/EN_agrofuels_case-study_2022.pdf\">study<\/a> carried out collaboratively by the organisations Stay Grounded, Biofuelwatch, He\u00f1\u00f3i and Global Forest Coalition. Their analysis assesses the plant project and addresses the impacts it has had, and could have, on residents of Villeta\u2019s Santa Rosa community.<\/p>\n<p>Santa Rosa, home to 50 people, is the community closest to the site where the Omega Green plant will be built, and where several industries already exist. Many families have moved away in recent years because of the isolation caused by nearby industries, which have limited their freedom of movement by buying up land in the area.<\/p>\n<p>Local residents, who preferred not to be identified, told Di\u00e1logo Chino that they were not necessarily against the construction of another industrial project like Omega Green, as long as it does not cause environmental damage to the area.<\/p>\n<p>The mayor of Villeta acknowledged that many families in Santa Rosa have opted to sell their land and leave the area in the face of industrial expansion and limited movement. However, he was in favour of the project because of its economic benefits. According to the <a href=\"https:\/\/www.ecbgroup.com.br\/en\/noticia\/banks-and-global-companies-will-be-the-suppliers-of-the-omega-green-advanced-biofuel-plant-in-paraguay#:~:text=The%20total%20investment%20will%20reach,8%2C000%20million%20in%2010%20years.\">company<\/a>, the plant will contribute over US$8 billion to Paraguay\u2019s GDP over 10 years.<\/p>\n<h2>The operation<\/h2>\n<p>The project envisages a total production volume of 20,000 barrels per day of renewable diesel, renewable jet fuel and by-products, according to the environmental impact assessment. BSBIOS\/ECB Group told Di\u00e1logo Chino that it will only use certified feedstock, as this is a requirement of its biofuel buyers.<\/p>\n<p>BSBIOS\/ECB Group has already signed contracts with Shell and BP for the supply of biofuels that should account for 90% of the plant\u2019s capacity, a representative of Paraguay\u2019s Ministry of Industry and Commerce told Di\u00e1logo Chino. The company will also seek to offer its production to the domestic market, depending on demand.<\/p>\n<figure id=\"attachment_52312\" aria-describedby=\"caption-attachment-52312\" style=\"width: 400px\" class=\"wp-caption alignright\"><a href=\"http:\/\/stage.dialogochino.net\/en\/climate-energy\/52305-palm-oil-amazon-sustainable-or-deforestation-risk\/\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-52312\" src=\"https:\/\/dialogue.earth\/content\/uploads\/2022\/03\/UTE_BBF-ENVIRA_2-1.jpg\" alt=\"\" width=\"400\" height=\"194\"><\/a><figcaption id=\"caption-attachment-52312\" class=\"wp-caption-text\"><strong>Read more: <a href=\"http:\/\/stage.dialogochino.net\/en\/climate-energy\/52305-palm-oil-amazon-sustainable-or-deforestation-risk\/\">Amazon palm oil: sustainable fuel or deforestation risk?<\/a><\/strong><\/figcaption><\/figure>\n<p>The plant will feature an electrolysis unit to generate hydrogen using water and electricity from clean, renewable sources; this hydrogen is then used to treat the biomass raw materials in the fuel production process. The adjacent Paraguay River will be the main source of water, which will be supplied to the plant via dedicated pipes.<\/p>\n<p>For the vice-minister of industry and commerce, Ramiro Samaniego, Omega Green is an example of the type of project and the type of investment that Paraguay wants. The plant will add value to the national production of soybean, which today is mainly destined for export, he added.<\/p>\n<p>Samaniego affirmed that the government is working \u201cvery closely\u201d to ensure compliance with environmental protection in relation to the project. At the moment, he said, they are working with producers to certify their soy production. Such is the case of a <a href=\"https:\/\/www.mic.gov.py\/mic\/w\/contenido.php?pagina=1&amp;id=2481\">soy cooperative<\/a> in Alto Paran\u00e1, a department where there has been an expansion of soy monoculture.<\/p>\n<p>The director of environmental impact assessment at the Paraguayan Ministry of Environment, Carolina Pedrozo, declined to comment on the project.<\/p>\n<h2>Biofuels feedstocks<\/h2>\n<p>\u201cHow \u2018sustainable\u2019 are biofuels for aviation?\u201d asks the group of environmental organisations behind the Omega Green study. \u201cAnd, we ask, why the first aviation biofuel refinery in South America, and one of the largest in the world, is being built in Paraguay.\u201d<\/p>\n<p>The low level of aviation in Paraguay itself, and the potentially negative impacts of the production of raw material inputs, mainly soybean oil and animal fats, on people and the lands, they say, are the main reasons for the questioning.<\/p>\n<p>\u201cThe animal fats would come from the by-products of the slaughter of beef for export. Paraguay is the sixth largest exporter of beef in the world. With just 7 million inhabitants, the country has a cattle herd of 14 million cows,\u201d says the report, which links the expansion of cattle farming to deforestation in Paraguay.<\/p>\n<p>Monocultures such as soy also contribute to the transformation of the country\u2019s forest cover, the report argues. The <a href=\"https:\/\/www.inbio.org.py\/superficies-de-siembra\/\">total area<\/a> under soybean cultivation reached 3,701,631 hectares in 2021, according to the Institute of Agricultural Biotechnology (INBIO). Paraguay is the world\u2019s <a href=\"https:\/\/onlinelibrary.wiley.com\/doi\/full\/10.1111\/joac.12436#:~:text=Paraguay%20became%20the%20sixth%20largest,Department%20of%20Agriculture%2C%202020).\">sixth largest<\/a> soybean producer and the fourth largest exporter.<\/p>\n<p>The biofuels case study points out that around 60 million kg of pesticides are used to produce soy every year in Paraguay. This has led to the contamination of surface and groundwater, and soil deterioration, which has an impact on the livelihoods of <a href=\"https:\/\/www.ine.gov.py\/Publicaciones\/Biblioteca\/comunidad%20indigena\/Censo%20de%20Comunidades%20de%20los%20Pueblos%20Indigenas%20Resultados%20Finales%202012.pdf\">indigenous peoples<\/a> and rural communities.<\/p>\n<blockquote><p>It cannot be sustainable when it is going to reproduce the current model of primary extraction, of soy and cattle, in a context of climate crisis<\/p><\/blockquote>\n<p>Although it does not appear in current environmental assessment, but does appear in <a href=\"https:\/\/www.ecbgroup.com.br\/es\/noticia\/el-grupo-ecb-firma-un-contrato-de-suministro-de-materia-prima-sostenible-de-pongamia-con-investancia-para-la-biorrefineria-omega-green\">announcements<\/a> made by the company, another input for Omega Green would be pongamia, or <em>Millettia pinnata<\/em>, a quick-growing tree native to Asia. It is an exotic species that could compromise the biodiversity of the Chaco region, where cultivation of the tree has already begun, the organisations warn.<\/p>\n<p>\u201cIt cannot be sustainable when it is going to reproduce the current model of primary extraction, fundamentally of soy and cattle, in a context of climate crisis,\u201d said Omar Yampey, a researcher at He\u00f1\u00f3i, one of the organisations responsible for the Omega Green study.<\/p>\n<p>In response to the study by environmental organisations, the company has described it as having \u201cno basis in reality\u201d, referring to erroneous data and ignoring the certification process of raw materials. \u201cIt is a piece designed to disseminate theories contrary to the progress of Paraguay, its economy and its society. And this is not useful for a serious debate on the issue of sustainable development,\u201d a company spokesperson told Di\u00e1logo Chino.<\/p>\n<p>Amid the disagreement, preparatory work began for the construction of the facility in November 2021, when CEO Battistella once more <a href=\"https:\/\/www.ecbgroup.com.br\/en\/noticia\/bsbios-prepares-infrastructure-on-new-site-to-start-construction-of-omega-green-biorefinery-in-paraguay\">reaffirmed<\/a> Omega Green as being \u201cof national interest\u201d and \u201cstrengthening [Paraguay\u2019s] image before international investment agencies\u201d.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>US$1 billion Omega Green plant is expected to be completed in 2025. Communities and environmental organisations have raised concerns<\/p>\n","protected":false},"author":3882,"featured_media":50055183,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[758],"tags":[50040295,531,595],"hashtags":[],"country":[50002600],"class_list":["post-50055157","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-biofuel","tag-deforestation","tag-soy","country-paraguay"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.0 (Yoast SEO v26.0) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Paraguay wants to build South America\u2019s largest biofuels plant | Dialogue Earth<\/title>\n<meta name=\"description\" content=\"US$1 billion Omega Green biofuels plant in Paraguay is expected to be completed in 2025, but communities and environmentalists raise concerns\" 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