Building a world of
resilient communities.

MAIN LIST

 

Japan and Brazil Sign Biofuel Deal

Brazil's Ministry of Agriculture, Livestock, and Supply and the Japan Bank for International Cooperation (JBIC) signed, February 3, the first phase of a term of reference for the future implementation of a bilateral biofuel program aimed at exporting ethanol and biodiesel fuel to the Japanese market.

Between April and December, Brazilian and Japanese technical specialists will assemble a detailed picture of Brazil's agricultural production of energy sources and define strategies for the modernization of the sector and the expansion of fuel alcohol production in Brazil.

The use of biofuel is already a reality in various countries. In 2003 the Japanese government regulated a law that authorizes the mixture of up to 3% of alcohol with gasoline.

Now their interest has turned to financing long-term projects capable of increasing Brazilian production and guaranteeing the continuous and regular exportation of this product to Japan.

This will allow Brazil to accumulate exportable surpluses to supply the Japanese market, which, at the outset, already presents a demand of 1.8 billion liters per year.

Brazil current annual consumption amounts to approximately 13 billion liters of fuel alcohol, pure or mixed with gasoline. Japan is also interested in importing castor oil to produce biodiesel (a mixture of the oil with diesel derived from petroleum), which will start to be used in Brazil this year. The future bilateral agreement should also provide incentives to the production of biodiesel in Northeast Brazil.

Accoridng to the executive secretary of the Ministry, Luiz Carlos Guedes, the likely cooperation agreement will permit investments to expand the area of sugar cane plantation, install new refineries, and modernize the infrastructure for warehousing and transporting ethanol.

"This agreement would have extraordinary economic, social, and environmental significance and would strengthen the relationship between Brazil and Japan even more," he underlined.

The representatives of the Japanese bank did not reveal the amount of investments that could be made in Brazil in the biofuel sector.

According to the director of the institution, Toshitaka Takeuchi, Brazil is the bank's main partner in Latin America, with a portfolio of US$ 8 billion for investments in the areas of petroleum, sanitation, agriculture, and logistics, among others.

Takeuchi emphasized that the term of reference signed yesterday represents only the first phase of a strategic medium and long-term project.

--
Translation: David Silberstein

Editorial Notes: Friday, 04 February 2005

What do you think? Leave a comment below.

Sign up for regular Resilience bulletins direct to your email.

Take action!  

Start your own projects. See our RESOURCES page.
Make connections via our GROUPS page.
Help build resilience. DONATE NOW.

 

This is a community site and the discussion is moderated. The rules in brief: no personal abuse and no climate denial. Complete Guidelines.


IEA report: US shale oil growth practically zero in 2017

US growth is seen to decline to a meagre 160 kb/d by 2017. That is plausible …

Richard Heinberg on Our Renewable Future

Richard Heinberg discusses our renewable future and how to get there.

Peak Oil Review - Mar 2

A weekly roundup of peak oil news, including: -Oil and the global economy …

Oil Prices Don’t Change Because of Rig Count

Oil prices don’t change based on weekly rig count reports. Yet every …

Energy policy - Mar 1

Syriza: another energy is possible / Renewable energy grab in the Sahara? / …

The Great Game in the Holy Land

Guess what? Almost all the current wars, uprisings, and other conflicts in …

North Dakota Considers Weakening Standards on Radioactive Drilling Waste as Oil Prices Collapse

As the collapse of oil prices threatens North Dakota's shale drilling rush, …