(Official Press Release –link-)
“We are very pleased to announce that the initial phase of heavy equipment installation and site preparation has been completed and that our construction partners are in the process of laying the foundation and supports for our Callao Port facility,” stated Pure Biofuels’ Founder and CEO Luis Goyzueta. “This is a significant step for our company and for the entire renewable fuel industry in South America. We are developing what we believe will be one of the largest biodiesel facilities in South America and we’re confident our business model will deliver top-grade biodiesel at competitive prices.”
Earlier this year, Pure announced its vertical integration strategy whereby the company will produce 100% of its own feedstock on plantations managed and operated by the company. The company has secured a long-term lease on an initial 60,000 hectare parcel of land in eastern Peru, which it expects to expand to more than 100,000 hectares in the coming months. By planting and harvesting its own crops and producing its own feedstock, the company expects to significantly diminish commodity price risk for its feedstock supply and substantially lower its cost base.
The Callao Port facility will cover 4.7 hectares (almost 12 acres) and sits on land purchased by Pure last year. Pure’s management hosted a ceremonial groundbreaking in February, when several senior public and private sector officials were on hand to help commemorate the occasion. The company has expansion plans that would increase nameplate capacity to more than 150 MMgy by the end of 2009.
Built-in advantages to locating the facility on the land purchased last year include its waterfront site on the Port of Callao and an underwater pipe that is being installed to deliver feedstock and other fuels for blending. The site also sits near the La Pampilla Refinery, Peru’s largest refinery.
About Pure Biofuels Corporation
Pure Biofuels is committed to becoming a leader in Latin America’s rapidly emerging biofuels industry. Pure Biofuels’ flagship project, the Callao Port biodiesel refinery near Lima, Peru, is scheduled to commence production during the first quarter of 2008. The Callao Port refinery will process biodiesel from crude palm oil feedstock. Pure Biofuels has secured memorandums of understanding with local fuel distributors for all of Callao Port’s annual biodiesel production. The company believes Peru’s economic growth and expansion, which includes a more than doubling of foreign direct investment in the country to $3.5 billion in 2006, adds to Peru’s promise as an attractive geography for alternative fuel production and development. For more information about Pure Biofuels, please visit Biofuels Corp.
Biodiesel is a clean and renewable energy source derived from vegetable oil that can be used in unmodified diesel engines. Biodiesel improves overall engine performance, is 100% compatible with existing diesel vehicles and infrastructure, and has proven reliable in over 50 million miles of road testing. Biodiesel significantly reduces harmful exhaust emissions, which contribute to global warming; is non-toxic at any level; and is the first and only fuel to have passed the Clean Air Act. The United Nations expects biofuels to account for a full 25% of world energy needs by 2025.
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