Brazil Min: Ethanol Prod To Hit 64 Billion Liters By 2017 -Estado
"Production is going to jump from 27 billion liters in 2008 to 64 billion liters by 2017," Mines and Energy Minister Edison Lobao was quoted by the local Estado news agency as saying.
Lobao made the comments during a ceremony ratifying the government's decision to boost the percentage of biodiesel mixed with diesel fuel to 5% in January. Brazil was originally expected to use the so-called B5 fuel in 2013.
Lobao made the decision to move up use of the biodiesel mixture in his role as president of the National Energy Policy Board. President Luiz Inacio Lula da Silva signed the measure into law Friday.
In July, Brazil started using a 4% biodiesel mix in commercially available diesel fuel, called B4. The move further helped to reduce imports of diesel fuel and has boosted refining margins at state-run energy giant Petrobras (PBR).
An increase to 5% can also be easily made because Brazil currently produces more biodiesel that it consumes. The move to increase biodiesel use also indicates the government may be willing to continue with tax breaks aimed at stabilizing biodiesel prices and stimulating production.
Brazil produces about 3.3 billion liters of biodiesel per year, while consuming about 1.4 billion liters annually.
Petrobras operates three biodiesel plants in Brazil: Candeias in Bahia state, Quixada in Ceara state and Montes Claros in Minas Gerais state. The three plants combined have installed production capacity of 170 million liters of biodiesel per year, or about 13% of the Brazilian market.
The company expects to produce 940 million liters of biodiesel a year by 2012.
-By Jeff Fick, Dow Jones Newswires; 55-21-2586-6085; jeff.fick@dowjones.com
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Publié le 23 octobre 2009 Copyright © 2009 Dowjones
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