Brazilian energy giant Petrobras announced Monday a joint venture with Nippon Alcohol Hanbai (NAH) of Japan to produce ethanol fuel for the Japanese market.
The new venture will be a 50-50 partnership between the two firms and will aim at the Japanese market where ethanol is used mainly for certain industries and perfumes.
“With Petrobras we will create a new market in Japan that will start in 2008,” said NAH president Jiro Amagai in a ceremony at the Rio de Janeiro headquarters of Petrobras.
Executives said Japanese law allows three percent ethanol in gasoline, which would mean a market for 1.8 billion liters of the alcohol-based fuel each year.
Paulo Roberto Costa, supply chief for Petrobras, said this would reach six billion liters if Japan allows a 10 percent ethanol mixture.
In 2005, Petrobras produced 15 billion liters of ethanol and exported 2.5 billion of the fuel, made principally from sugar cane.
Ethanol is non-polluting and helps reduce carbon dioxide emissions blamed for global warming.
Source: Agence France-Presse
