Japan and Brazil Sign Biofuel Deal

Brazil’s Ministry of Agriculture, Livestock, and Supply and the Japan Bank for International Cooperation (JBIC) signed, February 3,  the first phase of a term of reference for the future implantation of a bilateral biofuel program aimed at exporting ethanol and biodiesel fuel to the Japanese market.

Between April and December, Brazilian and Japanese technical specialists will assemble a detailed picture of Brazil’s agricultural production of energy sources and define strategies for the modernization of the sector and the expansion of fuel alcohol production in Brazil.


The use of biofuel is already a reality in various countries. In 2003 the Japanese government regulated a law that authorizes the mixture of up to 3% of alcohol with gasoline.


Now their interest has turned to financing long-term projects capable of increasing Brazilian production and guaranteeing the continuous and regular exportation of this product to Japan.


This will allow Brazil to accumulate exportable surpluses to supply the Japanese market, which, at the outset, already presents a demand of 1.8 billion liters per year.


Brazil current annual consumption amounts to approximately 13 billion liters of fuel alcohol, pure or mixed with gasoline. Japan is also interested in importing castor oil to produce biodiesel (a mixture of the oil with diesel derived from petroleum), which will start to be used in Brazil this year. The future bilateral agreement should also provide incentives to the production of biodiesel in Northeast Brazil.


Accoridng to the executive secretary of the Ministry, Luiz Carlos Guedes, the likely cooperation agreement will permit investments to expand the area of sugar cane plantation, install new refineries, and modernize the infrastructure for warehousing and transporting ethanol.


“This agreement would have extraordinary economic, social, and environmental significance and would strengthen the relationship between Brazil and Japan even more,” he underlined.


The representatives of the Japanese bank did not reveal the amount of investments that could be made in Brazil in the biofuel sector.


According to the director of the institution, Toshitaka Takeuchi, Brazil is the bank’s main partner in Latin America, with a portfolio of US$ 8 billion for investments in the areas of petroleum, sanitation, agriculture, and logistics, among others.


Takeuchi emphasized that the term of reference signed yesterday represents only the first phase of a strategic medium and long-term project.


Translation: David Silberstein
Agência Brasil

Tags:

  • Show Comments (2)

  • giancarlo vilone

    castor oil
    in the castor oil the % of the mixture if can explain me at this time we in ethiopia with 50 000 ht land we go to plant castor olready in ethiopia more than 4 campany they start plantation is there any fund when you plan biofuel please if you can help us information thank

  • Guest

    Correction
    biodiesel is not a mixture of the oil with diesel derived from petroleum.

    Biodiesel is a diesel fuel made from vegetable oil and alcohol

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Brazil Keeps Import Tariff on Ethanol at Least Until July

As announced by the Brazilian minister of Agriculture, Reinhold Stephanes, the reduction of the ...

Ahmadinejad’s Provocation in Brazil: US and Israel Have no Courage to Attack Iran

Is Mahmoud Ahmadinejad, the president of Iran, worried about a possible military attack by ...

Footwear: In Brazil, the Heels Are Alive with Prints and Nature

Creativity and fashion are no longer terms popular only within factories of end products ...

Fresh Icons

Thanks to the lowest common denominator factor even the less gifted new Brazilian idols ...

Take Your Peek

Among those exposed by the indiscreet CD-ROM is president Fernando Henrique Cardoso. No one ...

Rousseff and Serra Hide Their Pro Choice Leaning to Win Brazil Presidency

Dilma Rousseff, the woman handpicked by Brazilian president Luiz Inácio Lula da Silva to ...

Will Brazil and Portugal Ever Agree on a Common Language?

Brazil and Portugal have signed a few orthographic (spelling) reform agreements in the past, ...

Brazil Expecting 3,000 Importers from 100 Countries at Francal Shoe Fair

Brazil’s International Trade Fair of Shoes, Fashion Accessories, Machinery and Components (Francal) president, Abdala Jamil ...

Global Warming Might Turn Brazil’s Amazon into Scrubland

The conference held in the United Kingdom early this month on climatic changes cautioned ...