Petroleum giant BP's plans to invest between $5 and $6 billion on ethanol production over the next five to 10 years.
Brazilian Sugarcane Industry Association (UNICA) president Marcos Jank, said it was further evidence of the Brazilian cane industry's positive long-term outlook.
"Clearly BP understands what we at UNICA have been saying for the past few weeks. There's a global economic crisis and its effects are being felt in Brazil, but there are also solid foundations in our sector, with internal demand for ethanol on the rise thanks to the success of flex-fuel cars as they gradually replace vehicles powered exclusively by gasoline on Brazilian roads," he added.
The second-largest oil company in Europe, BP arrived on the Brazilian ethanol scene when it picked up a 50 per cent interest in a $683 million investment in Tropical BioEnergia S.A., in a partnership with two local comapanies: Grupo Maeda and SantelisaVale, each with a 25% share of the company. Headquartered in the town of Edéia in the central Brazilian state of Goiás, Tropical initially plans to set up two mills to produce ethanol from sugarcane.
BP estimates that by 2030, biofuels will answer for up to 19 per cent of the global fuels market for transportation.
TheBioenergySite News Desk