ECB plans to build the plant in the municipality of Villeta, 45 km (28 miles) from the Paraguayan capital, Assuncion.
Spain's engineering group Acciona SA was selected to build Latin America's first plant to produce advanced biofuels HVO and SPK in a project that will use technology from U.S. firms Honeywell UOP and Crown Iron Works, Brazil's ECB Group has said.
ECB plans to build the plant in the municipality of Villeta, 45 km (28 miles) from the Paraguayan capital, Assuncion. The plant would produce 20,000 barrels per day of HVO, a renewable substitute for diesel, and SPK, a renewable aviation fuel.
Financial details of the agreements were not disclosed. ECB previously hired Barclays Bank Plc and UBS Group AG as financial advisers to raise part of the $800 million capital expenditure estimated for the project.
Executives from the companies involved in the project met with Paraguayan President Mario Abdo Benitez on Monday in Assuncion to discuss the plant.
ECB plans to export the future production to Europe, the United States and Canada, where those types of renewable fuels find more demand. Vegetable oils such as soyoil are the main raw materials to be used in the process.
