Abengoa Bioenergy Acquires 10% of O2Diesel
3 November 2005
Abengoa Bioenergy R&D (ABRD), a wholly-owned subsidiary of Abengoa Bioenergy, one of the world’s largest producers of biofuels, is acquiring10% of O2Diesel in an investment worth €3 million (US$3,588,000).
The two companies are also entering a five-year agreement for the joint development of O2Diesel’s ethanol-diesel blend for the European market.
O2Diesel Corporation has agreed to use the funds from ABRD exclusively for development of the European Market. The initial countries included in the territory are Belgium, France, Germany, Netherlands, Portugal, and Spain. As part of the agreement ABRD will be the exclusive supplier of the ethanol to be used in the blending of O2Diesel within the territory.
As part of the agreement ABRD will make available to O2Diesel Corporation the opportunity to base its European operation at one of Abengoa&rsqou;s facilities in Seville, Spain. O2Diesel’s experience with CityHome and municipal transit systems (earlier post) can be transferred to similar fleets in Europe that are looking for immediate NOx and PM reductions.
O2Diesel uses 7.7% ethanol, with up to 1% proprietary additive and a cetane improver. In tests against conventional diesel, O2Diesel reduces CO emissions by up to 26%; NOx emissions by up to 5%; and PM emissions by up to 40%.
Abengoa Bioenergy currently operates two ethanol plants in Spain with a total installed capacity of 150 and 170 million liters (40 and 45 million US Gallons) per year, respectively. It is developing a third plant in Salamanca with a capacity of 200 million liters (53 million US gallons) per year, of which 2.5% will be obtained from the conversion of cereal straw biomass by means of a new technology being developed by Abengoa Bioenergy R&D. (Earlier post.)
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