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SG Biofuels Seeks $31 Million IDB Loan for Guatemala Jatropha

SG Biofuels Inc., the renewable fuel company working with Airbus SAS, may receive $30.6 million in financing from the Inter-American Development Bank for jatropha plantations in Guatemala.

SG Biofuels will use the funds to plant 25,000 acres (10,100 hectares) of the energy crop on low-quality land unsuitable for food production, the San Diego-based company said today in a statement.

The Inter-American Development Bank is evaluating the $76 million project and may approve the loan and help arrange additional debt with other lenders, according to the statement.

The plantations will produce 6.2 million gallons (23.5 million liters) of plant oils a year. Jatropha is an inedible plant native to Central America. Its seeds are crushed to produce oils that are processed into biofuel and specialty chemicals.

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