BASF said it has inaugurated its new world-scale production plant for sodium methylate in Guaratinguetá, Brazil, its largest site in South America. The plant has a capacity of 60,000 metric tons per year and is supplying the regional market. Production started at the end of 2011.

It is the first BASF plant for this product in South America and the second in the world, in addition to a plant in Ludwigshafen, Germany. Capital expenditure for the project was in the low double-digit million euro range.

Sodium methylate is an efficient and reliable catalyst for the production of biodiesel, which has developed into an important and increasing alternative for diesel fuels in the past years. Biodiesel meets the requirements of engine manufacturers for high-quality fuels. Legislation in Brazil requires fuel to contain 5% biodiesel. In Argentina, biodiesel makes up 7% of fuel. Other South American countries have similar legislation.