Sao Paulo, Brazil, 20 Dec – Brazilian state oil company Petrobras and Japan’s Nippon Alcohol Hanbai KK signed an accord Monday to create a joint venture to export ethanol alcohol from Brazil to Japan.
The two energy firms will each hold 50 percent stakes in Brazil-Japan Ethanol, to be called Nippaku Ethanol in Japan, with the Brazilian company’s interest being controlled by its Dutch subsidiary, Petrobras Internacional Brasperto, BV.
Nippon Alcohol Hanbai controls 70 percent of the Japanese ethanol fuel market.
The new venture will seek technical and commercial solutions for the introduction of ethanol into Japan’s energy market to replace fossil fuels, a statement from the Brazilian company said.
The new company’s initial goal is to export 20 million liters of ethanol to Japan from 2008.
Petrobras, Brazilian mining giant CVRD and Mitsui of Japan signed a pact in May to carry out logistical studies on the export of ethanol from Brazil to Japan.
Brazil, the world’s largest producer of ethanol from sugar cane, allows 25 percent ethanol content in gasoline, compared to the 3 percent permitted in Japan. (macauhub).