Its scientific sophistication in feedstock production makes it an attractive destination to potential investors, while existing investors will be gladdened by the greater access to funding due to the high growth expectations from the global market.
"If Latin America shows a certain level of economic and political stability, larger numbers of investors will come in search of feedstock," explains Julio Campos, Industry Analyst at Frost & Sullivan. "Investors will bring in their wake, important improvements in R&D to further develop feedstock."
Although R&D has risen in relevance in the biofuels industry, Latin America still lags on that score. Scientists in the region will have to devise ways to produce new feedstock, lower production costs, and enhance existing production lines. Latin America needs more economic muscle to perform R&D all on its own and hence, will be looking to emphasize its strategic advantages to entice foreign investors.
So far, R&D in Latin America was concentrated on the improvement of existing chains and oil-to-biofuel systems and technology. However, Latin America has been working hard on refining its existing harvesting and transportation techniques and technologies to increase its feedstock yield and biofuel production.
Latin America is fast becoming one of the world's main biofuel feedstock producers and hence, the region should upgrade its R&D to keep pace with the feedstock production.
"Companies are coming to Latin America to settle processing plants near the feedstock," notes Campos. "Latin America will also be cashing in on the global lack of feedstock for biofuel processing, since it already has the required arable land."
