BioDiesel stocks

Biodiesel opens new front of dispute between deliverers

Saturday, December 23, 2006

Its now a game of strategy or will fuel deliverers go for the fleets?


To one year of the fulfilment of the legislation that becomes obligator in the country the mixture of 2% of biodiesel in the oil diesel, the fuel deliverers strengthen investments - the announced ones so far add R$ 216 million - and incite the dispute to gain market. The Deliverering, controlled BR for the Petrobras, was the first one to initiate vend of the B2 (mixture of 2% of biodiesel in diesel), and thus already starts to profit from its bets. Recently, it closed contract with Viação Itaim Paulista (VIP), company who operates a fleet of 1.880 buses in the São Paulo capital, for the supply of the B30. The mixture, composed for 30% of biodiesel, 8% of alcohol and 62% of diesel, was developed the order of the VIP and was authorized for vend for the National Agency of the Oil, Gas Natural and Bio-combustíbles (ANP).

The BR vends 6 million litres for month of the mixture to the company. Now, the deliverer negotiates venda of the B30 for fleets in other capitals of the country, as Belo Horizonte and Recife. "the VIP was a company who bought fuel in the physical market now and closed contract with the BR. To the few we are gaining customers market ", affirms Eugenio Mancini Scheleder, manager of development of new businesses of the BR. According to Mancini, the interest of company - mainly the ones that they act in the capitals - in adopting a less pollutant fuel grows. The company also signed contract with the Company Valley of the River Candy (CVRD) for supplying of its fleet and with 35 thermo-electrics, for use of biodiesel in the energy generation.

In the evaluation of Mancini, the other deliverers had delayed to buy biodiesel that the Petrobras acquired in the auctions. "we are using to advantage this surplus of the supplies to offer differentiated products, the B5, the B20, the B30. But when she will not have more surplus of the auctions, we go to have that to buy together to the plants, because these products had had great acceptance for the companies ", she affirms Mancini. The Deliverering BR commercializes the B2 since May of this year. Currently, vends the product in 3,6 a thousand ranks of its net in the country and keeps contracts of supply for 2,2 a thousand companies of great transport. "In this year, already we commercialize, in the total, 37 million litres of biodiesel, being that half of this is sold for great consumers". The goal of the BR for July of 2007 is to take care of to the 5,4 a thousand ranks and 6 a thousand great customers, reaching a average of pure use biodiesel of 32 million the 35 million litres to the month. "the goal is to anticipate in six months the obligatoriness", affirms Mancini. In this year, the BR invested to R$ 20 million in the adequacy of 46 bases terminals to receive biodiesel. In the next year, 10 million will be applied more R$ to adjust the others 20 bases.

Arnoldo Fields, coordinator of the Program of Biodiesel for the Agrarian Ministry of Public Works and the Economy, observes that the 16 authorized plants already to produce biodiesel have capacity to offer 532 million litres of the bio-combustíble and, until the beginning of 2007, with the entrance of more four units in operation, the capacity goes to grow for 800 million litres - the volume that was foreseen for 2008. "she offers exists, but the deliverers still are acting of shy form. E will have that to adjust itself to take care of to this demand ", it evaluates. It observes that the majority of these companies alone started to bet of fact in biodiesel in the last q4 of the year. The Shell initiated vend of the B2 in September, for 100 great customers and in 135 ranks of its net. Adriano Dalben, suppliment director of the Shell, esteem that until the end of the year the group will have commercialized 80 million litres of the B2 (the equivalent the 1,6 pure million of litres of biodiesel). "the Shell sell biodiesel in the Europe has ten years and is one of the greaters in the distribution of bio-combustíbles in the world. The company goes to use this expertise to grow in the area in Brazil ", affirms the executive.

The Shell adapt three bases of distribution in the North-east and goes to adjust the remains to receive the biocombustível until March. The total investment is of R$ 10 million. The goal, says Dalben, is to sell in the next year 2,8 billion litres of B2 (the equivalent the 56 million litres of biodiesel pure). The AleSat, that keeps a 1,1 net a thousand ranks in the country, decided to go beyond the distribution. The company will invest to R$ 130 million in the construction of a plant of biodiesel in the Center-West, with capacity to produce 114 million litres per year. As she informed the company to the Value, the decision was taken the group after to raise vends total of fuels in 6,5%, favours to the successful marketing with biodiesel. In December, the Ipiranga also initiated vend of the B2 in Goiânia (GO) and for 100 corporative customers. The group plans to extend the distribution to other capitals in 2007. "the expectation is to sell 250 million litres of the B2 [ 5 million litres of biodiesel pure ] in 2007", says Luiz Athayde Kauer, suppliment manager and transports of the Ipiranga. The company invested to R$ 5 million in this year in storage and will arrive in port other R$ 20 million in 2007. The Manguinhos also announced USS investment 10 million to initiate venda of the B2 in this month.

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