Many people ask us why we chose Paraguay to install Omega Green and establish a strategic alliance with the country. When we envisage this project, we looked for the most competitive location and we found it in Paraguay. The country has many competitive advantages. Many things have caught our attention in the country. We will focus on four of them.
To begin, Paraguay did a serious job of investments attraction. And this translates into two important aspects: Legal security – it is a country with a stable and reliable legal structure that gives confidence to investors; Financial strength reinforced by Paraguay’s fundamentals: the country economy has grown, its accounts are balanced, and it may soon reach the Investment Grade rating. Competitive tax environment with a tax matrix that encourages investments.
A second important point is on the technical side: Paraguay is already a major producer of animal and vegetable oils. They are the essential raw material to produce biofuels. Omega Green will dispose of a supply of oils from the meat, poultry, and pork industries, in addition to vegetable oils, mainly from soybeans, of which Paraguay is the 5th largest world producer. More importantly, it also has the potential to increase the production.
A third aspect is logistics: the Paraguay River is a very efficient transport channel. This is a project that needs competitive logistics to have a competitive production.
A fourth aspect is the supply of electricity. One of the main inputs we need at the facility is energy, second only to the raw material. Thanks to the Itaipú and Yacyreta dams, Paraguay has one of the most competitive energy costs in the region.
Since the very beginning, we received strong support from the Paraguayan government, which chose this project as a strategic vector for its development and its niche in the world. Paraguay has characteristics that favors a sustainable energetic transition model.
Over the next ten years, Omega Green plant will contribute to Paraguay’s US $ 8.2 trillion GDP. The government’s commitment was important, creating a free zone regime especially for Omega Green, which guarantees that we will have a fair tax structure. A lower tax burden is necessary to start a completely new and advanced industry in the country.
Our project has a strong commitment to the country. The construction of a conventional biodiesel plant typically costs about US $ 200 million, but second-generation facilities cost up to four times as much. Thus, it is a massive investment of US $ 800 million in a cutting-edge field with many complex industrial processes. The most important investment in the country’s history.
Omega Green will help to position Paraguay as a global leader in the sector and will increasingly value its exports. And we found the ideal base to launch this project that will be a benchmark for advanced biofuels in the southern hemisphere.