Argentine company Lomas del Sol plans to produce bioethanol from grapes to capture part of the biofuel market in the country, local media reported this week.

Argentina has a 12% mandate for ethanol blend in gasoline, which is expected to be increased in future. Currently, the ethanol for that requirement is produced from sugarcane and corn.

Lomas del Sol is looking to produce the biofuel from grapes of lower commercial value. The project is estimated to require between 130,000 and 260,000 tonnes of grapes.

The firm is partnering with Argentina's National Agricultural Technology Institute (INTA) and the project is already being discussed with the ministry of energy.

Argentina is among the largest producers of wine in the world. In 2015, the country produced 815 million litres (215 million gallons) of ethanol, up 23% from 2014, Platts reported in February, citing data from the Argentinian Association of Biofuels and Hydrogen.