Brazil’s Grupo Potencial announced on Tuesday that it will invest 600 million reais ($108.86 million) to boost biodiesel production at one of its plants, positioning it to have the world’s largest capacity for soy oil-based biofuel, reported Reuters.

This investment comes as the Brazilian government pushes to expand the presence of biofuels in domestic markets.

President Luiz Inacio Lula da Silva is expected to sign a bill titled Fuel of the Future into law on Tuesday, which aims to gradually increase the biodiesel blend in diesel fuel, among other initiatives.

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Grupo Potencial stated that its facility in Parana will raise its annual biodiesel production capacity from 900 million liters (238 million gallons) to 1.62 billion liters (428 million gallons).

With its current capacity, the plant is already the largest in Brazil, according to Potencial. Construction for the expansion is set to start in 2025, with completion anticipated in 2026.

The company is optimistic that the increased production will satisfy market demand, as the new legislation is projected to raise the biodiesel blend in diesel from the current 14% to 25% by 2035.

Arnoldo Hammerschmidt, head of Grupo Potencial, commented, “The energy transition is an irreversible global movement. Our country is making significant strides towards ensuring legal security, investment predictability in the sector, and stability in our energy mix.”