17 August 2011 23:55 [Source: ICIS news]
HOUSTON (ICIS)--A Petrobras joint venture plans to expand the capacity of a sugarcane mill in Quirinopolis, Goias, allowing it to process 8m tonnes for the 2014-2015 harvest season, the Brazil-based energy producer said on Wednesday.
The project will cost reais (R) 520.7m ($327.5m, €226.0m), Petrobras said. For the 2011/2012 season, the mill will process 2.3m tonnes of sugarcane.
The joint venture, Nova Fronteira, is made up of Grupo Sao Martinho and Petrobras Biocombustivel, the biofuels subsidiary of Petrobras.
The expanded mill will process enough sugarcane to produce 700m litres ethanol for the 2014/2015 season, making it the largest mill dedicated to ethanol production, Petrobras said.
Earlier, Petrobras had announced that it was considering the expansion plans.
The Goias plant started production in 2008 and gradually increased its capacity.
The announcement comes as Brazil struggles to meet domestic demand for the biofuel. For the first time in years, the country has imported ethanol.
($1 = R1.59)
($1 = €0.69)
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