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    Biofuel Giant to Invest in Chile

    By Keith R | November 18, 2006

    Topics: Biofuels, Energy & the Environment, Environmental Protection | No Comments »

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    Sudzucker's Orafti Plant in ChileThe German sugar giant Südzucker recently announced it plans to invest heavily in biofuel production in Chile. According to a report in the Chilean news daily El Mercurio, Südzucker would create a Chilean facility of its CropEnergies subsidiary, which currently runs the largest bioethanol facility in Europe. Südzucker opened a plant in Region VIII of Chile earlier this year (as Grupo ORAFTI) to extract the soluble fiber inulin from chicory for use in food production. Südzucker would like to produce both bioethanol and biodiesel in Chile from wheat and beetroot.

    Before investing, the Germans are demanding that Chile “improve” its regulatory regime governing biofuels and guarantee crop supplies. The Chilean Ministries of Economy, Agriculture and Mines and Energy are currently working on a biofuels regulatory package to be unveiled in the coming weeks. In addition, Chile hopes to sign a biofuels cooperation agreement with Germany later this month. Chile’s President Michelle Bachelet has made one of her presidency’s priorities ensuring that 15% of the country’s energy sources come from renewable sources other than hydroelectric.

    To read the full story (in Spanish), check out this link.

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