Petrobras and ENI invest in bio-fuel production in Angola and Mozambique

28 March 2007

Brasilia, Brazil, 28 March – Brazil’s Petrobras and Italy’s ENI have signed a partnership agreement for building bio-fuel factories in Brazil and African countries, and have begun talks in Angola and Mozambique.

The supply director of Petrobras, Paulo Roberto Costa, said Tuesday in Brasilia that the two companies had chosen, at this first stage, Angola and Mozambique, as they already mine coal in those countries, and talks with the respective governments have already begun.

Costa said that the aim of the agreement was to produce ethanol from sugar cane and use other raw materials for manufacturing biodiesel, although the amount of investments and number of projects had yet to be decided.

In a meeting held Monday with leaders of the Federation of Industries of the State of Sao Paulo (Fiesp), the Italian Prime Minister, Romano Prodi showed interest in investing US$480 million in building four biodiesel factories in Brazil.

The joint production shall be sold to Italy and other European countries with ENI’s chairman, Paolo Scaroni, saying that the European Union was looking into a project to add 5 percent of bio-fuel to gasoline and diesel.

The signing of the agreement was the high point of Romano Prodi’s visit to Brazil. (macauhub)