• Categories
  • Archives

Brazil Joins Italy to Produce Biofuel in Brazil and Africa

Italian energy company ENI

Italian energy company ENI Brazil's state-controlled oil company Petrobras and Italy's energy company ENI signed an agreement in São Paulo, Brazil, to develop and commercialize biofuels technology and announced plans to build four bio-diesel plants in Brazil.

The memorandum defined as "a strategic alliance for international markets" was signed before Italian Primer Minister Romano Prodi and Brazil's president Lula da Silva.

Both companies will also study the possibility of using other commodities for refining into biofuels and will assess the expansion of Brazil's current capacity for refining heavy fuels.

The four biodiesel plants are likely to cost about US$ 480 million and are in line with the EU target of producing 20% of its energy from renewable sources such as bio-diesel and ethanol by 2020.

Brazil is the world's second-biggest ethanol producer (behind the US) and the top exporter. Brazil recently signed a similar agreement with the United States during the visit of US President George Bush. (US ethanol is made out of corn, Brazilian from the remains of sugar cane refining).

Brazilian cars have been running on biofuels for decades and the country's expertise is in great demand.

"The Italian market is interested in the import of biofuels because Italy is not self sufficient," said Mr. Prodi following his meeting with the all powerful São Paulo Federation of Industries.

Prodi also announced that the new strategic alliance represents "a bilateral association logic" between both countries and targeted to third parties.

The strategy could mean undertaking joint projects for the production of ethanol in African countries and "could begin in Angola", but other countries have also been considered.

Eni is 30% owned by the Italian government and Petrobras is 60% state-owned.

Mercopress

Tags:

  • Show Comments (2)

  • Luiz Alessio

    Maybe to get some investment going my friend, Its bad but we dont have the bling bling(money) hehe to get things going and its always good to held Africa. Those guys look like they need a hand. So good luck for africa brasil and italy

  • conceicao

    So Italy will import Brasilian ethanol duty-free if its national champion oil company is a partner in the Brasilian ethanol plants that produce the fuel? Or is this a deal where Italy invests money in Brasil in return for technology transfer that Eni can then deploy in an African country that has a favorable trade deal with the EU and favorable conditions for sugar cane cultivation? Why not just start importing
    Brasilian ethanol now in return for agreement by Brasilian producers to license their technology at a reasonable price to any one who might want to employ it? What is the point of all of the complication?

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

February 1993

CONTENTS: Cover: Rio: under siege (p. 7) First person: Amo esse caos (p. 9) ...

Brazil’s Scandal Leads Vice President to Leave His Party

Brazil’s Vice President and Minister of Defense, José Alencar, has announced that he will ...

‘Poverty Still Has Collor,’ Brazilian Official Recognizes

Brazil’s 5th Intergovernmental Forum on the Promotion of Racial Equality just took place in ...

CVRD and Alcan Accused of Violating Human Rights in Brazil

A Brazilian NGO (Non-Governmental Organisation) has denounced the construction cooperative of a hydro-electric basin ...

Brazil Fears no Blackouts or Brownouts At Least Up to 2010

Brazil does not face the risk of running short of electric power, either for ...

Brazil’s Lula Might Win Reelection and Still Lose His Mandate

Brazilian President Luiz Inácio Lula da Silva is headed toward a first-round victory Sunday ...

Brazilian Officer Who Killed Indian Faces Jury 9 Years After Crime

Today, August 4, a military police officer charged with murdering Raimundo Silvino, an indigenous ...

Consumers Blast U.S. for Taxing Brazil Steel

U.S. steel-consuming industries will continue to struggle to be competitive in the wake of ...

Fear in Bahia, Brazil, Is Emptying ATM Machines and Supermarket Shelves

Sunday, February 5, 2012. 7.30 am. A side road in a residential area of ...

G-7, Let the Poor Go Debt Free, Says World Forum in Brazil

On the first day of the official program of the V World Social Forum ...