Petrobras (PBR) and Mitsui to Invest in Ethanol Project

July 2, 2008 2:35 PM EDT

Dow Jones is reporting that Petroleo Brasileiro, or Petrobras (NYSE: PBR), and Japan-based trading company, Mitsui & Co. (Nasdaq: MITSY), today announced that they will invest in a large ethanol project in Brazil's Goias state. Neither company disclosed the exact amount that they would investment.

Several months ago, Petrobras and Mitsui formed a joint venture, Participacoes Nippo Brasileira em Complexos Bioenergeticos SA, in an attempt to make intriguing investments in renewable energy projects. The venture between Petrobras and Mitsui is focused specifically on ethanol, with the goal of reaching the capacity to produce 4.5 billion liters of ethanol.

Today's announcement follows this venture, as, according the a statement by Petrobras, the joint venture will partner with Itaruma Patricipacoes SA in order to produce 200,000 cubic meters annually of ethanol from sugar cane.

Petrobras said it "...and Mitsui decided to invest in the project, considering its environmental and economic feasibility, as well as the great potential to export Brazilian ethanol to meet global demand for renewable energy".

Petroleo Brasileiro S.A., or Petrobras, together with its subsidiaries, engages in the exploration, exploitation, and production of oil from reservoir wells, shale, and other rocks.

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