REUTERS./REVISTA EXAME Rio de Janeiro-The president of Petrobras, Jose Sergio Gabrielli, said this Monday that the company should increase in ethanol production through acquisitions.
“We had a different strategy before. Now we have changed. Our strategy was through greenfield (new plants). Today we intend to grow our production mainly through acquisitions, “Gabrielli said in an interview on the Business Plan Petrobras for the period between 2010 and 2014.
Petrobras plans to invest $ 3.5 billion into biofuels (production, logistics and marketing) by 2014, an increase of more than $ 1 billion in the previous plan.
On Monday, Petrobras announced an agreement with São Martinho. This agreement will allow Petrobras to produce ethanol in the Midwest of Brazil. This region is considered a new frontier for the cane.
Two months ago, Petrobras signed a similar agreement with Guarani, Brazilian company of the French group Tereos.
According to Miguel Rossetto, President Petrobras Biofuel, the growth strategy of oil to ethanol will be based on the holdings in both Guarani and in the new company formed with São Martinho.
Petrobras has a strategy of not being a majority in their agreements for ethanol, but seeking a relevant participation.
Together with its partners, Petrobras currently has a processing capacity of 24 million tons of cane, with production forecast of 890 million liters of ethanol in the 2010/11 season.
But this volume should more than double by 2014 to 2.6 billion gallons, according to Petrobras’ new investment plan.
In 2014, the company’s expects growth of the ethanol production in Brazil to be between 4 and 5 percent.