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Evonik increases sodium methylate production capacity at Rosario, Argentina, plant by 50% to 90,000 tons; company notes growing biodiesel demand in South America with Brazil's B15 blending quota for 2025

July 12, 2024 (press release) –

 
  • Expanded production to meet increasing biodiesel requirement across the South American region
  • Annual production capacity increased by 50% to 90,000 tons
  • Consolidates Evonik’s commitment to promoting sustainability within the sector

Hanau, Germany. Evonik has announced the expansion of its sodium methylate production capacity at its Rosario plant, located in the Sante Fé Province in Argentina. With this expansion, the company strengthens its position as a leader in the biofuels industry, driving innovation and sustainability across South America.

The move is in response to growing demand for biofuels in the region and will see the annual capacity increase by 50%, from 60,000 tons to 90,000 tons. Expanded production of high-performance sodium methylate catalysts aims to significantly increase biodiesel productivity and reduce production costs across South America.

“The sodium methylate plant is of great importance to Argentina and other countries in the region, with Brazil acting as a major export destination,” said Dr. Hendrik Schönfelder, the Regional President for Central and South America at Evonik, adding that the investment also creates local value and economic resilience.

The announcement is of particular importance to the region, due to the Brazilian government’s recent increase of mandatory quotas for blending fossil diesel with 15% biodiesel (B15) in 2025.

It also aligns with the objectives of New Industry Brazil (NIB), which aims to boost the national industry and expand the share of biofuels in the transportation energy mix.

“Upon completion of the sodium methylate production expansion in Argentina and progress on the new alkoxide plant in Singapore, we reinforce our position as one of the largest global catalyst manufacturers and our continued commitment to sustainable development, innovation, and leadership within the industry,” said Cauê de Arruda, Head of Evonik Catalysts Central and South America.

Expanding the plant’s production is part of Evonik’s global strategy and long-term vision to actively drive advancement within the biodiesel sector. "South America is a significant strategic growth region for us and we are pursuing our goal of being close to our customers, both in South and North America and in the Asian market," said Dr. Harald Schwager, member of Evonik's Executive Board.

The plant provides an efficient and cost-effective way for businesses to decarbonize the mobility sector, achieve greenhouse gas (GHG) emission reduction targets and reduce reliance on fossil fuels.

To mark the occasion, a ceremony was held at Evonik’s Rosario plant in Argentina on 11th July; additionally, the event saw site employees awarded Evonik’s Silver Safety Award, celebrating seven consecutive years without a single lost time accident.

Evonik is one of the world leaders in specialty chemicals. The company is active in more than 100 countries around the world and generated sales of €15.3 billion and an operating profit (adjusted EBITDA) of €1.66 billion in 2023. Evonik goes far beyond chemistry to create innovative, profitable, and sustainable solutions for customers. More than 33,000 employees work together for a common purpose: We want to improve life today and tomorrow. 

The Smart Materials division includes businesses with innovative materials that enable resource-saving solutions and replace conventional materials. They are the smart answer to the major challenges of our time: environment, energy efficiency, urbanization, mobility and health. The Smart Materials division generated sales of €4.46 billion in 2023 with more than 8,100 employees.  

In so far as forecasts or expectations are expressed in this press release or where our statements concern the future, these forecasts, expectations or statements may involve known or unknown risks and uncertainties. Actual results or developments may vary, depending on changes in the operating environment. Neither Evonik Industries AG nor its group companies assume an obligation to update the forecasts, expectations or statements contained in this release.

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