Petrobras Signs Deal For Ethanol Venture With Japan's NAH

ENERGY TECH

In 2005, Petrobras produced 15 billion liters of ethanol and exported 2.5 billion of the fuel, made principally from sugar cane.

Rio De Janeiro (AFP) Dec 19, 2005
Brazilian energy giant Petrobras announced Monday a joint venture with Nippon Alcohol Hanbai (NAH) of Japan to produce ethanol fuel for the Japanese market.

The new venture will be a 50-50 partnership between the two firms and will aim at the Japanese market where ethanol is used mainly for certain industries and perfumes.

"With Petrobras we will create a new market in Japan that will start in 2008," said NAH president Jiro Amagai in a ceremony at the Rio de Janeiro headquarters of Petrobras.

Executives said Japanese law allows three percent ethanol in gasoline, which would mean a market for 1.8 billion liters of the alcohol-based fuel each year.

Paulo Roberto Costa, supply chief for Petrobras, said this would reach six billion liters if Japan allows a 10 percent ethanol mixture.

In 2005, Petrobras produced 15 billion liters of ethanol and exported 2.5 billion of the fuel, made principally from sugar cane.

Ethanol is non-polluting and helps reduce carbon dioxide emissions blamed for global warming.

Source: Agence France-Presse

ENERGY TECH

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