Biodiesel, or "green oil", is a fuel that is not available on the Romanian market yet, although millions of cars fill up from biodiesel stations in many other countries.
Portuguese company Martifer, Germany''s MAN Ferrostaal, businessman Adrian Porumboiu, vegetable oil producer Argus Constanta and Rompetrol are betting more than 236 million euros on biodiesel, which is derived from agricultural materials.
According to estimates, the business will go from zero (at this point) to 85 million euros in 2010, given that the price of a biodiesel litre, taxes and excises not included, is a third of the price of a litre of diesel oil. The biodiesel market is slated to reach a level of 150,000 tonnes in the next five years.
The business has also stirred the interest of oil companies, with Rompetrol group announcing an investment project worth 16m euros for 2007.
A share of 5.75% of the fuel used in transportation in Romania by 2010 will have to be made of biofuel (bioethanol - which is added in petrol and biodiesel, which is blended with diesel oil).
"By 2020, about 20% of the energy contained in petrol and diesel oil must be bio energy," said Ana-Maria Cristina, chairman of the Romanian Agency for Foreign Investment (ARIS).
Why are foreign investors betting on Romania?
"The choice of Romania as a destination for the development of this type of activity is largely due to its agricultural potential and soil fertility, to the friendly environment for the cultivation of the grain that is used as a raw material for this type of fuel and last, but not least, to the low labour costs," says the ARIS official.
The first foreign company to have approached this segment was Portugal-based Martifer. Thus, Biomart, a division of Martifer, operating in constructions, real estate and energy, is pouring 55m euros to build a plant in Lehliu Gara, Calarasi county, to produce biodiesel, a fuel derived by processing rapeseed oil and sunflower oil.
The refinery will enter the market in September and will have an annual output of 100,000 tonnes of biodiesel.
Martifer''s project has attracted other investors, also interested in biodiesel. One of the most important projects was announced by Retter Project-management, Dafora, Sibiu County Council and MAN Ferrostaal, a unit of Germany''s MAN. The value of the project revolves around 138m euros.
Argus Constanta has said it will earmark 10m euros for biodiesel production, while Racova Com-Agro-Pan group, owned by businessman Adrian Porumboiu, will invest about 18m euros in a biodiesel plant in Vaslui.
Rompetrol also announced it would invest 260m euros in Petromidia, of which 16m euros in a biodiesel plant.
Biodiesel projects
* Biomart, a unit of Portuguese company Martifer, will invest 55m euros to build a plant in Lehliu Gara
* Retter Project-management, Dafora, Sibiu County Council and MAN Ferrostaal, a MAN unit, will fund a 138m-euro project
* Argus Constanta, the vegetable oil producer, will invest around 10m euros in biodiesel production
* Racova Com-Agro-Pan group of firms will earmark 18m euros to build a plant in Vaslui
* Rompetrol will invest 16m euros in a biodiesel plant
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