Biofuels Sector

May 2009
 At the moment Colombia has a production
output of over 1 million liters of ethanol.

CAPACITY
NAME REGION
(lt/day)
INCAUCA Miranda, Cauca 300.000
PROVIDENCIA Palmira, Valle 250.000
MANUELITA Palmira, Valle 250.000
MAYAGÜEZ Candelaria, Valle 150.000
RISARALDA La Virginia, Risaralda 100.000
TOTAL 1.050.000
 Current and future ethanol proyects will
double Colombia ethanol output in the next
couple of years.
CAPACITY TYPE OF
NAME REGION
(lt/day) CROP
GPC Puerto López, Meta 20.000 Cassava
RIOPAILA Zarzal, Valle 300.000 Sugar cane
Pto. López – Pto.
BIOENERGY 300.000 Sugar cane
Gaitán, Meta
MAQUILTEC Tuta, Boyacá 300.000 Sugar beet
Alcoholes
Valle R. La Vieja,
Quindianos 150.000 Sugar cane
Quindío
Asociados
Ethanol
Marialabaja, Bolívar 300.000 Sugar cane
Consortium Board
Total 1.370.000
 Domestic Biodiesel production will reach
500,000 tons by the end of the year 2009.

CAPACITY
NAME REGION YEAR
(lt/year)
OLEOFLORES Codazzi, Cesar 50.000 Jul-2007
ODIN ENERGY Santa Marta, Magdalena 36.000 Mar-2008
BIOCOMBUSTIBLES
SOSTENIBLES DEL Santa Marta, Magdalena 100.000 Feb-2009
CARIBE
BIO D Facatativá, C/marca 100.000 Abr-2009

MANUELITA San Carlos de Guaroa, Meta 100.000 Jun-2009

ECODIESEL Barrancabermeja 100.000 Sept-2009

BIOCASTILLA Castilla La Nueva, Meta 10.000 Sept-2009
TOTAL 496.000
 Demand for ethanol and biodiesel will
increase five fold by the year 2020.

300

250

200
Miles de galones

150 Ethanol 
Biodiesel 
100

50

0
2008 2010 2015 2020

Source: UPME, MME

 Because there are more than 7 million hectares of
available land to develop large scale projects

Colombia has 7 million hectares of available land in which to plant and grow crops
destined for the biofuels industry. This land does not compromise Colombia’s rainforests or
other ecological reserves..

Zones with high

potential for
ethanol production

Zones with high potential

for the production of palm
oil
Colombia has three times the amount of available
land to develop biofuel projects than Malaysia

Land utilization (Colombia vs. Malaysia)

Sources: Food and Agricultural Organization, United Nations

 Colombia’s available land amounts to
around 90% of land currently devoted to
cultivating biocrops in Brazil

Land used to plant Biocrops (millions of hectares)

• Colombia has the 
potential to be one of 
the countries with 
the largest land 
extension devoted to 
planting and 
harvesting of 
biocrops to supply 
ethanol and biodiesel 
processing plants

Source: International Energy Agency (IEA)

 Colombia’s sugar industry is the most productive
worldwide and the palm oil industry is the most
productive in the region

Colombia surpasses Brazil’s 
and Ecuador’s sugar 
productivity levels by 50% 
and 55% respectively. The 
sugar industry in Colombia 
is a world leader in 
productivity being able to 
produce 9,000 liters of 
ethanol per year/ha.
 In palm oil production, Colombia’s
productivity levels are twice those of Ecuador
and surpass Brazil’s by 50%.

• In palm oil production,

Colombia’s productivity
levels are twice those of
Ecuador and surpass
Brazil’s by 50%. Colombia
can produce 4,200 liters of
Palm oil
biodiesel per hectare
annually. 

Palm oil process

 Colombia has centered its
biofuel production on sugar
Energy efficiency of biocrops used in the production of cane and palm oil;.
ethanol and biodiesel
barrels/ ha/ year
Biodiesel
ETHANOL

Source: Ministry of Mines and Energy according to Goldman Sachs y LMC

 Because Colombia´s internal demand is
not fully covered by local production of
biofuels as well as the existence of a law
that requires the mix of biofuels with
fossil fuels

Production of 
ethanol only  By 2020, local demand 
meets 66% of  for ethanol is expected to 
established  increase 500% from 
Government mandated mix of 
demand Production of  current levels while the 
E20B20 by 2020. Colombian law 
biodiesel meets 20%  currently mandates a 10% blend of  demand for biodiesel 
of the established  ethanol in gasoline and a 5% blend of  should increase 700%. 
demand biodiesel in diesel. 
 Because Colombia offers investors a
flexible and progressive legal
framework regarding Biofuels

Single Enterprise Free Trade Zone: In Colombia new agribusiness projects

of Biofuels can be granted the status of Free Trade Zones in any place of the
country as a Single Enterprise Free Trade Zone

Investment in Millions or Outsourced Jobs

USD $ 16.94 500

 Income Tax Exemption for 10
years:
Colombia offers an Income Tax exemption for new late yield crops, like African
palm, planted between 2003 and 2013. These plantations will have a 0% income tax rate for
10 years form the moment they are planted

Palma Africana

Cultivo de Palma Africana

 Legal Stability Agreements for
up to 20 years

• Colombia offers investors the opportunity to sign 
a Legal Stability Agreement for a period of up to 20 
years. This mechanism allows the investor to insure that 
the laws and their interpretation will be applicable from 
the moment they sign the contract for up to 20 years

Guarantees legislation and current

Objective administrative interpretation of that
legislation

Minimum investment requirement of

Requirements USD 1,690,000.
Payment of a premium equivalent to 1%
of the investment made

Term
Up to 20 years