Petrobras, Guarani, Petromoc sign LoI for ethanol production, marketing in Mozambique

Dec 15, 2011 - Brazil's oil and gas giant Petrobras (NYSE:PBR), sugar and ethanol maker Acucar Guarani SA and Mozambican state-owned oil firm Petromoc yesterday signed a letter of intent (LoI) for the conducting of a feasibility study on production and commercialisation of ethanol in Mozambique.
Petrobras Biocombustivel, the biofuels subsidiary of Petrobras, is a partner of Guarani's parent company, Tereos Internacional, in a sugar production unit in Mozambique, Companhia de Sena, with crushing capacity of 1.2 million tonnes of sugar cane.
According to Petrobras's press release, the study will seek to analyse the possibility of investments in the production of ethanol from the molasses obtained in this unit.
The companies will target to meet the expected boost in the Mozambican ethanol demand with the introduction of a mandatory 10% ethanol blend in petrol (gasoline).
This measure is seen to help reduce Mozambique's dependence on imported fuels and contribute to ensuring the country's energy safety, Petrobras affirmed.

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