Brazil-Japan ethanol investment could hit US$8 billion

A partnership between Brazils Petrobras and Japans Mitsui to help supply Brazilian ethanol to the Japanese market could cost US$8 billion. The amount would be used to buy minority stakes in 40 ethanol distilleries across Brazil to ensure Japan a stable supply of ethanol as it prepares to mandate an obligatory mix of ethanol in gasoline. According to Petrobras estimates, Japan could require 500 million to 1.5 billion gallons of ethanol per year, depending on the ethanol mix which could range between 3% and 10%. (March 4, 2007)