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Petrobras Biofuel Has Big Plans for Brazil

The Board of Managers at Brazil's Petrobras Biofuel is going to present, during a meeting scheduled for late August, a preliminary proposal for revising the strategic plan for the biofuels sector and there are plan to expand the money invested in biofuel.

A "significant" increase in the investment volume scheduled for the period ranging from 2009 to 2013 is forecasted. The information was supplied by the president of the new Petrobras subsidiary, Alan Kardec.

Kardec assumed the direction of the holding company last July 29, in the city of Candeias, state of Bahia. On that day, during the meeting of the Board of Managers, it was decided that the current plan needed revision, and that a strategic plan for the biofuel area from 2009 to 2013 must be devised quickly.

To the president at the holding, it is still too early to disclose figures. However, he asserted that, after the revision, there is going to be a "significant" increase of investment in the sector – the forecasted total in the 2008-2012 strategic plan is US$ 1.5 billion.

"It is evident that funds cannot remain at its current level, because they also include capital for the construction of two alcohol pipes, which should single-handedly absorb 46% of total investment."

Alan Kardec claimed that, taking into account what is expected of the new company, whose production goal is of nearly 1 billion liters of biodiesel until 2012, a greater investment volume than the current one will surely be required. "Thus, it is safe to say that investment will be greater."

ABr

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