Brazilian Company Petrobras Invests $2.8 Billion in Biofuels

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Brazilian state-run oil company Petroleo Brasileiro S.A. (NYSE:PBR) (Petrobras) (Rio de Janeiro) is moving forward with its investments in biofuels through subsidiary Petrobras Biocombustivel S.A. (Rio de Janeiro), focusing mainly on fuel ethanol and biodiesel. In the 2009-13 Business Plan, Petrobras assigned almost 2% of total investments to biofuels, which represents about $2.8 billion.

Petrobras' corporate strategy in regards to the biofuels industry is to "operate on a global basis in biofuels commercialization and logistics, leading the domestic production of biodiesel and expanding participation in the ethanol segment." The company's vision for 2020 is to be among the top five biofuels producers in the world.

About 80% of the amount to be invested will be directed to the sugarcane industry, for the production of fuel ethanol, electric energy, and sugar. For an example, view June 2, 2010 article - Petrobras' Investment in Acucar Guarani Facilitiates Cogeneration Projects. Petrobras Biocombustivel's strategy in fuel ethanol production is to acquire shares in sugarcane-based ethanol producing companies, such as Acucar Guarani S.A. (Sao Paulo), and greenfield projects such as Total Agroindustria Canavieira S.A. (Bambui).

Regarding biodiesel production, Petrobras Biocombustivel has three operational plants and participates in the BSBIOS - Industria e Comercio de Biodiesel Sul Brasil (Passo Fundo) project. For more details, view November 24, 2009, article - Petrobras Biocombustivel Joins Biodiesel Project in Brazil.

In May 2010, the company announced a $180 million investment in a greenfield project in Tome-Acu, Para state, northern Brazil, that will become operational in mid-2013. The company also announced a $530 million investment in conjunction with the Portuguese oil company Galp Energia SGPS S.A. (ELI:GALP) (Lisboa) to produce biodiesel for the European market. The companies plan to build two plants: a palm oilseed crusher plant in Brazil, which will export the oil to the second facility, which will be near the Sines refinery, where biodiesel will be produced. It is expected to become operational in 2015.

Petrobras is also involved in the logistics and transport of fuel ethanol, since it participates in the PMCC Projetos de Transporte de Alcool S.A. (Sao Paulo) joint venture, which develops ethanol pipelines. For more details, view April 9, 2010, article - PMCC's Ethanol Pipeline Ready to Commence Construction in Brazil.

The $2.8 billion figure represents an increase in relation to the amount assigned in the 2008-12 plan. The 2010-14 Business Plan of the company shows higher investments, reaching up to $250 billion, but it has not been approved yet, and the share for biofuels has not been disclosed.

View Project Report - 300012135 200002090 200004524 300012124 300012290 300012295

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.