ECB Group signs biofuel purchase and sale agreement for more than 2.5 billion litres with Shell
Contract includes the purchase of more than 500 million litres per year from 2024, helping to meet global demand for cleaner energy
ECB Group Paraguay and Shell Trading (US) Company (“Shell”) have signed a multi-year contract that will provide more than 500 million litres of renewable diesel and renewable jet fuel per year to Shell, one of the world`s largest energy companies. The contract is expected to run from 2024.
The renewable diesel HVO (Hydrotreated Vegetable Oil) and renewable jet fuel (Synthetic Paraffinic Kerosene/SPK), also known as Sustainable Aviation Fuel (SAF), will be produced at ECB’s to-be-built Omega Green biorefinery in Paraguay, with a total production capacity of 20,000 barrels per day of HVO, SPK/SAF and green naphtha.
\"We are delighted to have Shell as our single largest offtaker,” said founder and CEO of the ECB Group, Erasmo Carlos Battistella. “With Shell’s well-known focus on decarbonization initiatives, it makes perfect sense for us to work together to provide renewable fuels solutions, especially in the road transportation and aviation sectors. This agreement also positions the Omega Green state-of-the-art biorefinery as a major producer to supply a growing demand for low carbon fuels.”
The ECB Group, led by Battistella, is Brazil`s leading producer of biodiesel with an annual capacity of 828 million litres. With the contract signed today, the group establishes itself as the leading future producer of HVO and SAF in the southern hemisphere, providing fuels that help drive decarbonization of key transport sectors such as aviation and road transport.
“Biofuels must play a key role in achieving a net-zero emissions energy system, but collaboration is critical if the world’s supply and use of these low-carbon fuels is to become more widespread,” said Odeh Khoury, Shell Vice President for Products Trading and Supply, Americas.
“We are pleased to work with ECB Group to supply low carbon biofuels to meet the demand for cleaner energy from our customers around the globe. By combining ECB’s production capabilities and regional presence with Shell’s global biofuels trading expertise we are able to bring a significant volume of renewable fuels into the global market.”
The ECB Group venture to build and operate the Omega Green biorefinery includes contractor Honeywell UOP, owner of the renewable fuel refining technology for UOP Process reactors ™, Crown Iron Works, a U.S. company that provides processing systems and technologies, including feedstock pretreatment technology, and Acciona, one of the world`s largest engineering and construction companies.