Brazilian biofuels update

Yesterday’s announcement of a 30 year ethanol supply agreement between Brazilian producer Sao Martinho and Japan’s Mitsubishi Corporation, was echoed today by a cooperation agreement between a major northeast Brazil sugarcane group, Farias, who signed a protocol of intentions with a handful of Chinese investors to build ethanol mills that could process up to 10 million metric tons of sugarcane per harvest. Meanwhile, more details have emerged on the partnership between Italy and Brazil, in which both countries plan to kickstart a biofuel industry in Africa, starting with Angola and Mozambique, two countries with a very large bioenergy potential. Finally, during his visit with President Bush later this weekend, President Lula will urge the US to reform its tariff and subsidy rules on biofuels. Like Prodi, the two leaders will discuss collaboration on biofuel projects in Africa.
Biopact