Small-scale equipment maker enters Latin America's biggest market

By Green Fuels Ltd. | May 10, 2012

Manufacturer and exporter of biodiesel processing equipment, Green Fuels Ltd., is establishing an office in Brazil to bring accessible biodiesel production to this vibrant market.

James Hygate, CEO of Green Fuels, said that with sales and biorefineries already established in Mexico and Paraguay and talks underway with potential Colombian customers, the time was right for Green Fuels to enter Latin America’s largest economy, the sixth largest in the world.

“We’re seeking a well-positioned, local industrial partner in Brazil for a possible joint venture in the production and supply of biofuels equipment and facilities,” Hygate said. “We’ve already established that government at the federal, state and municipal levels recognize the need for environmentally friendly biodiesel, plus a need to dispose of used cooking oil in a more sustainable way. In addition, biofuel production is an extremely attractive business proposition for ethanol mill owners, agribusiness, processed food industrial groups and large farmers who should be producing their own fuel during harvest, helping to stabilize their fuel costs over the year and providing a greener footprint to their products.”

Hygate also cited a market for entrepreneurs who recognize that biodiesel would be well received in Brazil and would instantly understand the affordability-to-profit ratios on offer.

The Green Fuels office in Rio de Janeiro will be headed by the Brazilian-Anglo team of Manuel Thompson-Flôres, the respected Brazilian financier, and businessman Julian Beach, who has lived and worked in Brazil for more than 10 years. Between them they have a comprehensive network of contacts in the region.

Manuel Thompson-Flôres said the beauty of the Green Fuels equipment is that it has been designed to make it easy to own a biorefinery. “This is a biodiesel plant that can be housed in a 40-foot container, run on a small, community scale in remote locations and can be remotely managed and maintained via 24-hour online diagnosis. This technology is a perfect fit for a country as large and geographically diverse as Brazil. A Green Fuels biorefinery has no complex control room, no high-maintenance centrifuges, and the plant is completely controlled via an automated touch screen.”

Also of great interest to the Brazilian market is the ability of Green Fuels’ plants to fuel small-scale electricity generators in remote regions in the north and northeast of Brazil, utilizing locally grown or waste feedstock, thus eliminating the high transport and storage costs, as well as the risk of fuel delivery failures due to inaccessibility.

“We see Federal Government programmes such as Luz Para Todos (electricity for all) as a key market for this technology, and one that we will be addressing aggressively with local strategic partners,” Beach said.

Green Fuels processors range from domestic scale through production capacities of 8,000, 20,000 and 50,000 liters (2,113, 5,283 and 13,209 gallons) of biodiesel per day. The system is designed as flexible shrink-wrapped products that allow biodiesel producers to get to market within three months, many times faster than previous generations of biodiesel technology.

It converts the waste oils and fats readily available within a city or community into fuel for local usage. With low capital setup costs and a small footprint, there is no complex fit out, so the system can quickly return sustainable profits. What’s more, it’s an asset that retains its residual value, so it makes for a compelling case when seeking funding.

About 80 percent of the Green Fuels’ turnover comes from exports, Mexico being the market that most closely resembles Brazil. There feedstock is especially grown to fuel public transport. Green Fuels also has customers in the U.S., China, the United Arab Emirates, Bali and Paraguay, and is currently building biodiesel plants in Australia and Hong Kong.


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