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The Alcoholes del Uruguay (Alur) subsidiary of Uruguay's state oil company Ancap will announce the winner of a tender to build a US$100mn ethanol plant near Paysandú in the coming days, according to local press reports.
The plant is due to be completed in late 2013, with annual production of 70Ml/y of ethanol from sorghum. It is expected to require around 50,000ha annually of the crop, paper El País reported.
In July, Alur awarded a US$25mn contract to Sweden's Alfa Laval for a biodiesel plant in Montevideo, bringing the company's production capacity to 64,000m3/y from 18,000m3/y.
The projects come under Alur's strategy to increase biofuel production in response to new legislation compelling Ancap to increase the current 2% ethanol admixture in its gasoline to 5%, starting January 1 2012. On 31 December 2014, the 5% mix becomes compulsory under law.