Inpasa Exploits Paraguay Tax Edge for Biodiesel and Sugarcane Ethanol

Inpasa, Brazil's corn-ethanol market leader, has found success in Paraguay by producing biodiesel and sugarcane ethanol, products it does not make in Brazil.

The company uses its Paraguayan operations to take advantage of tax benefits and access local fuel mandates. Inpasa entered the Brazilian market in 2017 after founding in Nueva Esperanza in 2006, following an unusual path for a Paraguayan company expanding into Brazil rather than the other way around.

Inpasa now operates six plants in Brazil and two in Paraguay, with two additional Brazilian facilities under construction. The company produces 1.3 million liters of corn ethanol per day in Paraguay and 16 million liters in Brazil, with a planned annual capacity exceeding 8 billion liters once the new facilities are completed.

Inpasa's operations have reshaped Paraguay's corn market, using just over 1 million metric tons of grain per year from the country. The company also produces biodiesel at its São Pedro plant in Paraguay, importing feedstock duty-free under Paraguay's Maquila Law and exporting without taxes.