Production of biodiesel is about to become one of the fastest growing industries in the country after a series of projects have been launched or presented since the start of the year. The long lists of domestic- and foreign-financed initiatives for building of biodiesel refineries is expanded by the German consortium ICS International Consulting SP. It has secured EUR 320mn financing for 6 plants in the Bulgarian districts of Shumen, Pernik, Silistra, Yambol, Chirpan and Mezdra, according to information presented by the local association for business and cultural development. The information is separately confirmed by the city of Shumen, whose mayor has signed a framework agreement with International Consulting. Construction works in Shumen are expected to start in October this year and to end up by the end of next year. The project in the north-eastern city is valued at EUR 25mn. The biodiesel refinery will have an annual capacity of 60mn to 80mn tonnes of fuel produced from garbage and waste materials as well as cereal crops or other biologic inputs. The projects of International Consulting are also supported by the local authorities in Pernik and Silistra. The fuel production technology proposed by the investor is based on studies of German and Bulgarian scientists.

A recent study of an expert team of the Technical University of Sofia estimates that the volume of locally produced biodiesel would reach 123mn litres or 9.18% of the total diesel supply in the country in 2010. The share of biodiesel produced in the country will reach 5.65% of the total diesel supply next year as a result of ongoing investments in several settlements. However, it is not clear what portion of the production will be directed to the local market, as many of the bio-refiners are oriented to exports. At the same time, the local agricultural sector is projected to cover only a minor part of the biodiesel demand for inputs that will necessitate imports of cereal crops used for production of clean fuel.