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Petrobras Starts Delivery of Biodiesel Made in Brazil

Petrobras Biofuels' Candeias Mill in Bahia, Brazil Brazilian company Petrobras Biofuels delivered its first commercial load of biodiesel produce on Friday, October 3. The shipment, of 44,780 liters (11,830 gallons) left Candeias Mill, in Bahia, the first biodiesel mill built by the state-owned company in the country.

The new delivery is part of the production sold in biodiesel auctions promoted by the National Petroleum, Natural Gas and Biofuel Agency (ANP). In all, sales totaled 8 million liters (2.1 million gallons) of biodiesel.

Candeias mill has a capacity for production of 57 million liters (15.1 million gallons) of biodiesel per year.

Petrobras Biofuel also has another biodiesel mill in the city of Quixadá, in Ceará, and a third mill in Montes Claros, in Minas Gerais. The third is still in the final assembly stages.

Total production capacity of the three mills should be 170 million liters a year.

Apart from confirming the company environmental engagements through greater production of biofuels, the creation of Petrobras Biofuels has strengthened the company's operation in the sector.

By 2012, Petrobras should invest US$ 1.5 billion in the sector. "This should bring the company to national leadership in biodiesel production and expand the participation in the ethanol business, focusing on the international market," according to the company.

In the installation of the Candeias, Montes Claros and Quixadá biodiesel mills, the company should invest 295 million Brazilian reais (US$ 187 million).

Petrobras Biofuels also includes the Bioenergy Complexes (CBios), which are enterprises set up in partnership with Brazilian producers and international conglomerates for the production of ethanol for export. In this case, the target is to produce 4.75 billion liters by 2012.

"With the subsidiary, Petrobras strengthens its position with regard to the environment and with social development. Apart from contributing to the reduction of global warming, biofuels allow for generation of jobs and income in the country, with the use of family farming for production of raw materials," informs Petrobras.

According to the state-owned company, Petrobras Biofuels is engaged in obtaining the Social Fuel Stamp within the premises of the National Program for Production and Use of Biodiesel. "The company takes on the challenge of expanding the presence of family farming, always observing business, social and environmental sustainability."

The Candeias subsidiary, is studying the possibility of acquiring existing mills for production of biodiesel. The idea is to strengthen production, causing the Brazilian state-owned company to reach the target of producing 940 million liters of biofuel a year after 2012.

Company information shows that Petrobras Biofuels is born with "a robust project portfolio" and, apart form the investment scheduled to reach around US$ 1.5 billion by 2012, should have 250 employees and be based in the Maracanã, in Rio de Janeiro, where Petrobras Distribuidora (BR) is also located.

The establishment of Petrobras Biofuels is due to the state-owned company's intention of integrating activities in the biofuel area – as they are currently spread throughout several of the group's subsidiaries.

In an interview, Alan Kardec sought to appease sector businessmen concerned about the "possible" federalization of the ethanol sector. "We are not aiming at federalization," he said.

ABr

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