Brazil Petrobras inks $820m ethanol supply deal with Toyota Tsusho

01 November 2010 16:20  [Source: ICIS news]

HOUSTON (ICIS)--Petrobras said on Monday that it signed an ethanol supply agreement with Japanese trading firm Toyota Tsusho (TTC), which will use the biofuel as a feedstock for a bio-polyethylene terephthalate (PET) project in Taiwan.

The deal is worth $820m (€590m) and includes exports of 1.4bn litres of ethanol over 10 years, the Brazilian company said.

The agreement is the first long-term ethanol contract signed by Petrobras, which now partially owns some 900m litres/year of capacity under partnerships with Brazilian ethanol producers.

TTC plans to launch production of bio-PET in Taiwan at the end of 2011 with 200,000 tonnes/year of initial capacity, according to its website.

PET is mainly used for the production of synthetic fibres, with bottle-resin production as its next-largest application.

($1 = €0.72)

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By: William Lemos
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