Petrobras recently signed a contract to supply Toyota Tsusho Corporation (TTC) with hydrated ethanol for ten years. The Brazilian sugarcane ethanol will be used as feedstock in a chemical ethanol project that TTC is deploying with a local partner in Taiwan to produce Bio-PET.
Bio-PET is polyethylene terephthalate; it consists of 70% terephthalic acid and 30% monoethylene glycol, by weight. Bio-PET is made by replacing monoethylene glycol with a biological raw material derived from sugar cane. Toyota Motor recently announced that it will expand its use of Bio-PET in vehicles. (Earlier post.)
Petrobras will deliver 143,000 cubic meters (143 million liters, 37.8 million gallons US, of ethanol per year, and the contract is estimated to be worth some $820 million.
This is Petrobras’s first long-term ethanol supply contract, the company said, and it ranks the company among the biggest global players in the industry.
Petrobras Biocombustível will be responsible for providing the contractual volume through a contract with Petrobras.
(A hat-tip to Harold!)