Petrobras to spend $3.5bn in biofuel production, R&D in 2010-14

09 June 2011 20:10  [Source: ICIS news]

PORTO ALEGRE, Brazil (ICIS)--Brazil-based Petrobras's 2010-2014 business plan calls for spending a total of $3.5bn (€2.4bn) on biodiesel and ethanol - a figure that includes production, logistics as well as research and development (R&D), the company said on Thursday.

Out of the $3.5bn, $1.9bn will go towards ethanol, the company said. The goal is to reach 2.6bm litres of ethanol in 2014.

Earlier, Petrobras announced a $400m investment programme for research and development in biofuels.

New updates in ethanol investments as well as production goals will be divulged in the 2011-2015 business plan, which is about to be approved in the upcoming months.

Currently, the company has stakes in different companies such as Guarani, Nova Fronteira Bioenergy and Total Agroindustria Canavieira.

“We sought sector partners which had pre-eminence in management practices, corporate governance, security, environment and health - those values which are compatible to Petrobras", says Petrobras Biofuel director Ricardo Castello Branco.

Petrobras Biofuel finished 2010 with stakes in 10 of those companies' plants, Branco said.

Petrobras pursued the partnerships because of the companies' outlook for growth, he said. Now that Petrobras has stakes in the companies, it can now consider new projects to expand capacity.

($1 = €0.69)

For more on ethanol visit ICIS chemical intelligence
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