Brazil forecast to see $5bn in biofuel investments in next five years

15 September 2010 21:12  [Source: ICIS news]

SAO PAULO (ICIS)--Brazil’s biofuels industry could receive some $5bn (€3.9bn) in investments over the next five years as it becomes a leading global supplier, a Brazilian Mines and Energy ministry director said on Wednesday.  

Ricardo de Gusmao Dornelles said he believed about $3.5bn would come from Brazilian energy giant Petrobras, while $1bn would be invested by British Petroleum (BP), mainly for ethanol, according to the official.

Smaller investors would also contribute, he said.

Dornelles said the US and the EU would account for about two thirds of global biofuels consumption by 2020, with the US using 136bn liters of biofuels and the EU consuming 14.6bn liters.

However, "Neither the U.S. nor the EU have crop nor economical conditions to produce such volumes," Dornelles said in Portuguese at the Rio Oil & Gas conference in Rio de Janeiro.  

Dornelles did not offer details on current investments.

($1 = €0.77)

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