ECB Paraguay signs Free Zone contract for USD-800m biofuel plant
ECB Group, Paraguayan official free zone agreement
The local unit of Brazilian investment holding company ECB Group has signed a free trade zone regime agreement with the Paraguayan government regarding a USD-800-million (EUR 675.3m) renewable fuels plant.
Being part of the Free Zone regime provides the project developer with legal security for investment. The scheme itself is the largest private investment in a single project in Paraguay's history and is estimated to bring savings to the economy of more than USD 8 billion in 10 years, ECB said in a statement on Tuesday.
The agreement concerns the Omega Green project, which is the first advanced renewable fuels plant in the Southern Hemisphere. The facility is expected to have a daily production capacity of 20,000 barrels of renewable diesel (HVO) and renewable aviation kerosene (SPK).
In addition, Omega Green will produce green naphtha, used in the manufacturing of green plastics and other sustainable products. The plant itself will be powered exclusively by renewable energy, with operations scheduled to start in 2022, ECB said previously.
ECB noted that the HVO and SPK barres will be exported to countries that are signatories of the Paris Agreement.
The financial structuring of the project is the responsibility of Barclays and UBS banks, the announcement says.