Brazil’s Odebrecht invests in Angolan ethanol production

18 October 2007

Rio de Janeiro, Brazil, 18 Oct – Brazilian group Odebrecht said Wednesday in Rio de Janeiro it would partner Angolan oil companies Sonangol and Damer to invest US$200 million in sugar cane ethanol and electricity production in Angola.

The project, which is in the final stages of analysis, is to be carried out in Malanje province, next to the Capanda hydroelectric dam, in an area of 30,000 hectares, Odebrecht said in a statement.

Of this area, 20,000 hectares are for the planting of sugar cane and the remaining 10,000 hectares will be for crop rotation and setting up a factory.

The industrial unit will have the capacity to mill two million tons of raw materials, producing 160,000 tons of sugar, 50,000 cubic meters of ethanol and 140 megawatts of electricity per year.

The jointly-owned Angolan company, named Biocom (Companhia de Energia de Angola, Lda.), will be 40 percent owned by Damer, 40 percent by Odebrecht and Sonangol will have the remaining 20 percent.

According to Odebrecht, the project will “make use of the agro-industrial potential of the country, due to its weather and topographical characteristics, which in the colonial past ensured its prominent role as an exporter of commodities on the African continent.”

For Brazil, it added, it makes it possible to “boost the geopolitical position in Africa, the dissemination of ethanol as a biofuel around the world and the opening up of a services, technology and capital goods market for Brazilian agro-business.” (macauhub)