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"Brazil has all the necessary conditions to become the Saudi Arabia of ethanol", affirms Petrobas board member, Paulo Roberto Costa. He also adds "Brazil is surely to become the preferred biofuel provider of the world". After such enthusiastic (!) affirmations from Mr. Costa, let's have a look at the facts and previsions for the following years.

Ethanol production for 2006 was 3.5 billion liters and the previsions for 2012 are 9 billion. But this ethanol is not only for Brazilian cars: 5.5 billion gallons are to be exported. Petrobras will get the biggest part of the market, with 3.5 billion sold mostly to Japan. Petrobras, the biggest Latin American oil company, is planning to invest 1.2 billion dollars in biofuel production (both for biodiesel and ethanol).

The strategy for Petrobras is selling the Japanese the ethanol they need for Japan's upcoming 3 percent ethanol blend in gasoline while also selling sugarcane ethanol to Venezuela, Nigeria and the US. Mr. Costa also affirmed that they're negotiating with South Korea and China for a similar agreement.

Related:

• Brazil ethanol exports rising
• Does Brazil have an ethanol "bubble"? And will it burst?
• Bush, da Silva talk ethanol again; charity warns ethanol is a disaster

[Source: O Globo via Econoticias]