Brazilian ethanol exports may grow ``exponentially'' on demand from Japan should the country implement plans to promote blended fuel, said Paulo Roberto Costa, refining chief at Petroleo Brasileiro SA.
Brazil Ethanol Exports May Soar on Demand From Japan (Update1)
By Jeb Blount
Sept. 12 (Bloomberg) -- Brazilian ethanol exports may grow ``exponentially'' on demand from Japan should the country implement plans to promote blended fuel, said Paulo Roberto Costa, refining chief at Petroleo Brasileiro SA.
Japanese purchases of the fuel could rise to as much as 7 billion liters a year assuming the country moves ahead with plans to boost the ethanol content of regular gasoline to as much as 10 percent, Costa said. Brazil, the world's largest ethanol producer, exported 2.5 million liters last year, he said.
Petrobras is seeking to increase ethanol exports to help the government expand agricultural output and prevent poor farmers from migrating to the cities. The government-controlled company also views ethanol as way to extend the life of its oil reserves and allow more time to develop other alternatives to petroleum, Costa said.
``Japan isn't alone in its interest in increasing ethanol imports,'' he told reporters at the Rio Oil & Gas conference in Rio de Janeiro. ``There's the U.S. and other countries in Asia that want to increase their use.
Costa said that Petrobras' plans to spend as much as $600 building barges, pipelines and port facilities to move ethanol from refineries in Brazil's interior agricultural regions to ports on the Atlantic coast, are not aimed at creating an ethanol monopoly in the country.
``We simply want to use our expertise in trading and transport to become a player in the market,'' Costa said at the conference. ``Our participation will help farmers plant new fields of sugar-cane and build new ethanol refineries.''
To contact the reporter on this story: Jeb Blount in Rio de Janeiro at jblount@bloomberg.net
Last Updated: September 12, 2006 14:00 EDT |
