Italy to invest $480m in Brazil biodiesel plants

27 March 2007 16:16  [Source: ICIS news]

HOUSTON (ICIS news)--Italy will invest $480m (€360m) to build four biodiesel plants in Brazil as it starts preparing to meet future European Union (EU) renewable fuel standards, the Brazilian press reported on Tuesday.

Italy Prime Minister Romano Prodi, who was visiting Brazil this week, said the Italian government and private investors will fund the four-year projects. He was expected to make a formal announcement later on Tuesday.

Prodi said the EU will require member countries to replace 20% of its fossil fuel consumption with renewable alternatives by 2020.

He said the mandate represented a challenge for Italy, as the country is far from meeting such requirement.

Brazil will play a key role in helping Italy meet the EU fuel requirement, Prodi said during a meeting with business executives in Sao Paulo on Tuesday.

Italy and Brazil are also expected to develop ethanol projects in Africa through a partnership between Brazil’s oil company Petrobras and its Italian counterpart ENI (Ente Nazionale Idrocarburi).

Mozambique was expected to receive the first ethanol plant, according to news media reports, with the output to be exported to Europe.

($1 = €0.75)

By: William Lemos
+1 713 525 2653

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