Petrobras creates biofuels unit

By | May 09, 2008
State-controlled Brazilian oil company Petrobras SA has created a subsidiary to coordinate biofuels efforts under one management umbrella. The new subsidiary, launched March 3, will take on biodiesel input acquisition and processing, as well as ethanol production, and coordinate production-chain activities in Brazil and abroad, the company said. Wally Tyner, an agricultural economist and energy-policy analyst at Purdue University in West Lafayette, Ind., compared the Petrobras move with similar tactics at other oil companies investing in renewable energy. "Brazil has tremendous potential to increase ethanol production from sugarcane, so it may be even more attractive," he told EPM.