Petrobras Opens Biofuel Plants in Brazil
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July 31 – Brazil’s state-owned oil and gas giant Petrobras Brasileiro SA formally inaugurated its subsidiary Petrobras Biofuels on July 29 with the opening of its first mill in Candeias, Bahia.
July 31 – Brazil’s state-owned oil and gas giant Petrobras Brasileiro SA formally inaugurated its subsidiary Petrobras Biofuels on July 29 with the opening of its first mill in Candeias, Bahia.
The new plant, which is the first of three biofuel plants planned by the company, has the capacity to produce up to 57 million liters (15 million gallons) of biofuel per annum. The company plans to open the other two plants in Montes Claros and Quixada in August, after the completion of tests at the first plant. Petrobras Brasileiro would be investing a total of 295 million reais (or approximately $187 million) at the three plants and plans to invest $ 1.5 billion in the biofuel sector by 2012.
The three plants are scheduled to commence processing oils from soybeans, sunflower seeds and other vegetables, apart from dende oil and cattle fat, into diesel this year. While vegetable oil supplies will be sourced from local farmers, residual oil and fat will be obtained from used and leftover oil from food-frying processes and poultry and fish viscus (liver, intestine and stomach) will be collected from urban cooperatives and non-governmental organizations.
The three plants will be managed by the newly formed subsidiary, Petrobras Biofuels, the creation of which is likely to strengthen the company’s operations in the sector. Petrobras Brasileiro said that apart from contributing to the easing of global warming, the plants will help generate jobs and income in Brazil.
Petrobras Biofuels will absorb the bioenergy complexes, known as CBios, which are enterprises that bring together Brazilian producers and international conglomerates for ethanol production for export. The subsidiary’s chief executive Alan Kardec Pinto said he aims to produce and export 4.75 billion liters (or roughly 1.3 billion gallons) of ethanol output per annum by 2012. To achieve this target, the new unit is mulling over the possibility of buying existing mills for the production of biodiesel. This will also help the company strengthen its production and reach its target of producing 940 million liters (248 million gallons) of biofuel a year after 2012, according to Brazil Magazine.
The establishment of Petrobras Biofuels reflects Petrobras Brasileiro’s intention of integrating activities in the biofuel area, as they are currently spread across several of the group’s subsidiaries.
Alternatio Cirqui, EconomyWatch.com Energy
