The biofuel plant that Swiss group Clariant is building in Podari, in southern Romania, will be ready by the end of 2021, and production will also start towards the end of this year, says Dragos Gavriluta, CEO of Clariant Romania.

"Clariant's investment […] will be a factory for advanced biofuels derived from agricultural residues, namely straw. The biofuel that we produce mixes with conventional fuel, in our case petrol. This results in a mixture that reduces greenhouse gases by up to 95%. It is a large investment of over EUR 100 million for which we also received funding from the EU through the research and development program," Gavriluta explained in a video conference organized by Ziarul Financiar.

Romania has a huge potential in the supply of biofuel, and 10-15 factories like the one in Podari could be developed throughout the country, he argued.

"We have more than enough raw material in Romania to create this industry," he stressed.

The Clariant factory focuses on creating a local supply chain, working with farmers in the area. The company has contracts with up to 300 farmers, who will provide some 75% of the raw material.

The factory needs 250,000 tonnes of straw annually to produce 50,000 tonnes of ethanol. Farmers are interested in supplying straw to the factory, Gavriluta confirmed.

(Photo: Shutterstock)

andrei@romania-insider.com