LIMA Ė Spanish energy company Repsol inaugurated on Tuesday a new facility in Peru to produce environmentally friendly low-sulfur diesel fuel for the Andean nation.
The $470 million unit is part of Peruís main refinery, La Pampilla, located near Lima in the port city of Callao.
Peruvian President Pedro Pablo Kuczynski joined Repsol Chairman Antonio Brufau and CEO Josu Jon Imaz for the ceremony at the La Pampilla complex.
The output from the new production unit complies with a Peruvian law limiting the amount of sulfur in diesel fuel to less than 50 parts per million.
Brufau said the upgrade will reduce emissions of sulfur-dioxide by 100 tons per day, with the added benefit of producing roughly 40 tons of sulfur per day for use in industrial and agricultural processes.
Noting that most of Peruís commercial vehicles are powered by diesel, Kuczynski said that state oil company Petroperu is now in the process of spending $3.5 billion to enable production of low-sulfur diesel at its Talara refinery.
Repsol has also earmarked $270 million to equip La Pampilla with the capacity to produce low-sulfur gasoline.