Petrochina and Petrobras join forces to study ethanol production in Brazil

Sao Paulo, Brazil, 28 Dec – Brazilian state oil company Petrobras has announced an agreement with Petrochina to study ethanol production projects in Brazil, with a view to exporting it to China.

The memorandum of understanding, with a lifetime of six months, includes assessment of the “technical and economic feasibility of developing ethanol production projects in Brazil and the export of ethanol to Chna,” Petrobras said in a statement issued last week.

The projects will be carried out jointly by Petrobras Biocombustiveis, a subsidiary of the state company for ethanol and biodiesel, and by Petrochina International Company Limited.

According to Petrobras, China has adopted a policy of blending ethanol with gasoline, as a way of reducing greenhouse gas emissions.

“China plans not only to secure its supply of ethanol, but also to invest in production of the product in Brazil,” the statement said.

Currently, a quarter of Brazil’s entire fleet of 20 million vehicles uses ethanol, which accounts for half of fuel consumption in the country.

source: macauhub