Copetrol joins BSBios in Paraguay HVO project

Brazilian biodiesel producer BSBios said it reached an agreement to sell a stake in its Omega Green advanced biofuels project in Paraguay to local fuel importer-exporter Copetrol.

Neither the value of the transaction nor the size of the stake was disclosed.

The $1bn Omega Green biorefinery will be the largest in the southern hemisphere and one of the first in the region to have large-scale production of hydrotreated vegetable oil (HVO) – also known as green diesel – and bio-jet fuel or synthetic paraffinic kerosene (SPK). Project construction began in November 2021.

The $1bn plant will have capacity to produce 20,000 b/d of HVO and SPK.

Omega Green signed contracts last year with Shell and BP for 90pc of future HVO output. Under the terms of the contracts, the buyers have the option to purchase either HVO or SPK. The company is also negotiating long-term green naphtha contracts with petrochemicals firms.

The company plans to export to the US, Canada and the EU, with the first shipments to take place by 2025.

Copetrol is one of Paraguay's largest fuel distributors and importers with 600 filling stations across the country.