Brasil Ecodiesel, one the main biodiesel producers in Brazil, went through a financial reorganization and a revision on its strategic plan in 2009, year in which it achieved positive operating results for the first time since its incorporation in 2006.
The company's gross margin reached 17%, against negative figures in 2008 and biodiesel production in 2009 was 152,000 cubic meters.
As part of the new strategy, two plants which used castor beans as feedstock and one obsolete grain crushing facility, were shut down and the farms that couldn't grow other grains than castor beans were sold.
Brasil Ecodiesel still faces some challenges related to sustainability regulations, such as the revocation of the "Social Seal" for two biodiesel plants by the Brazilian Ministry of Agricultural Development (MDA). This governamental act is being disputed by Brasil Ecodiesel, seeking its cancellation.
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Thursday, March 25
Tuesday, March 9
Brazilian government revokes Ecodiesel's certificate
Brazil’s largest biodiesel producer, Brasil Ecodiesel, had their “Social Fuel certificate” for their two largest plants revoked by the country’s Agriculture Development Ministery.
That certificate is related to the social sustainability of the company’s operations, like purchasing feedstocks from small properties in the vicinity from their plants. As the certificate is mandatory for biodiesel producers to qualify to participate in official biodiesel auctions promoted by ANP (National Petroleum Agency), Brasil Ecodiesel may not be able to sell their biodiesel for as long as one year.
As a consequence, the company's stock fell 9.3% last Friday, March 5.
That certificate is related to the social sustainability of the company’s operations, like purchasing feedstocks from small properties in the vicinity from their plants. As the certificate is mandatory for biodiesel producers to qualify to participate in official biodiesel auctions promoted by ANP (National Petroleum Agency), Brasil Ecodiesel may not be able to sell their biodiesel for as long as one year.
As a consequence, the company's stock fell 9.3% last Friday, March 5.
Petrobras Biocombustiveis, subsidiary created by Petrobras to concentrate their ethanol and biodiesel operations, announced today losses of BLR 92 million, equivalent to $52 million, or Euro 38 million, in the fiscal year ended 31st December 2009, their first year in operation.
According to company statements, the loss is due to the fact that their three biodiesel plants, with 326 million litres per year combined capacity, went on stream in the second Quarter 2009 only and also to high feedstock prices in Northeastern Brazil, where two of their three plants are located.
According to company statements, the loss is due to the fact that their three biodiesel plants, with 326 million litres per year combined capacity, went on stream in the second Quarter 2009 only and also to high feedstock prices in Northeastern Brazil, where two of their three plants are located.
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