Petrobras of Brazil will put in around $2.5 billion to increase the production of ethanol and biodiesel this year through 2015. The amount forms part of the $4.1 billion that is expected to be spent for their biofuels business which includes $1.3 billion for logistics for their ethanol production and around $300 million for research. Petrobras is expected to pour in around $224.7 billion through the next 5 years basing it on the company’s business plan.
The priority of the company is to increase the ethanol production with investments of around $1.9 billion. In collaboration with their partners, the company is looking to produce around 1.5 billion gallons in 2015 which is about 12% of the market. The company will be the top producer in the domestic market if they reach this goal.
Petrobras will use 70% of the investments in the ethanol segment to make new ethanol, construct plants, put up distilleries, and renewal of the plantation. The investments will be done with partners like Nova Fronteira, Total Agroindustria Canavieira, and Guarani.
On the biodiesel segment, the company is looking to maintain its domestic share of around 25% of the market thru their $00 million of investments. Petrobras has about 5 plants today with biodiesel volume expected to hit 700 million every year.
The $300 million that will be poured into research will be used primarily to develop second gen ethanol for industrial production.