ECOPETROL TO CONSTRUCT PALM OIL BIODIESEL PLANT

UNCLAS BOGOTA 010618 SIPDIS SIPDIS FAITH CORNEILLE WHA/EPSC,JEFFREY IZZO EB, MATTHEW MCMANUS EB, MATTHEW ROONEY EB E.O. 12958: N/A TAGS: ENRG PREL ECON PGOV CO SUBJECT: ECOPETROL TO CONSTRUCT PALM OIL BIODIESEL PLANT REF: BOGOTA 10235 ¶1. Ecopetrol announced on November 15,2006 that it intends to build a biodiesel plant in Magdalena Department with an initial investment of USD 23 million. The plant is very close to Ecopetrol's refinery operations at Barrancabermeja, and would begin operations in 2008 (exact date unknown). The plant will have an annual capacity of an estimated 100,000 tons of biodiesel utilizing palm oil as the raw material (reftel). This would equate to approximately 2200 barrels of biodiesel fuel daily - about 40 percent of current domestic demand - utilizing a mixture of 5 percent biofuel with 95 percent diesel gasoline. Ecopetrol officials estimate that the facility will generate 4000 new jobs. ¶2. This is Ecopetrol's first direct investment in biodiesel. GOC plans for partial privatization of Ecopetrol (reftel) contemplate increased biofuels production in conjunction with augmented investments in gasoline and diesel production. WOOD