Brazil: Petrobras to Double Bio-fuel Production

In a bid to assert its authority as the world-leader in bio-fuel use, the Brazilian government has directed Petrobras (which is partially owned by the Brazilian government) to double its biofuel output over the next four years.  Brazil's government has set aside over $3.5 billion USD to help the company meet its lofty production goals.

Petrobras' announcement comes just a few days after a politically-motivated (and factually dubious) report was issued by the GOP front group AAPS claimed that bio-fuel production could lead to increased food prices and mass deaths.  Thankfully, Brazil's powers-that-be have seen through the AAPS' political smokescreen and are pushing forward with their biofuel plans, despite a recent a bump in global sugar prices that's convinced many refineries to turn surgacane into sweetener rather than ethanol, causing ethanol's prices to soar to a record $1.07 per liter last week.

This news follows the announcement of Shell's plan to invest 12 billion USD into Brazil's Cosan biofuel company last year, further cementing Brazil's status as a global biofuel power.

SourcesBloomberg;  Petrobras, via Autoblog Green.

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