Petrobras, Tereos mulling fuel ethanol production in Mozambique
By PAUL KIERNAN
Brazilian state-owned oil company Petroleo Brasileiro, or Petrobras, and French-controlled sugarcane miller Tereos Internacional said Wednesday they plan to study the possibility of producing and selling ethanol fuel in Mozambique.
Petrobras and Tereos, which together control Brazil's Guarani group of sugarcane mills, already operate a mill in the southern African country that crushes 1.2 million metric tons of sugarcane.
The two firms signed a letter of intent Wednesday to analyze the possibility of producing ethanol from the sugarcane molasses currently being produced by the mill in Mozambique.
"The expectation is to serve a new market that should open in the African country with the introduction of an obligatory 10% mix of ethanol into gasoline," they said in a joint statement.
Dow Jones Newswires
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