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Itarumã, Mitsui and Petrobras Form Ethanol JV

Itarumã Participações S.A., Petrobras and Mitsui have formed a 60-20-20 joint venture to produce sugarcane ethanol for export to Japan, North America and Europe.

Project location. Click to enlarge.

The partners will build a 200,000 kiloliter/year (53 million gallons US) bioethanol plant and also cultivate a new 30,000 hectare sugarcane plantation,  located in Cerrado—a wild inland grassland area. The project will not contribute to the deforestation of the Amazon rainforest, nor affect the existing sugar market, according to the partners.

The project will combust sugarcane bagasse for process heat and power. Total project cost is expected to be BRL 450 million (US$280 million). Start of ethanol production is targeted for the latter half of 2009.


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