Japan-Brazil Ethanol Investment Could Reach $8 billion
The Japan-Brazil connection is strong. There are more Japanese in Brazil than in any other country in the world, other than Japan.
Brazil's state run firm Petroleo Brasilero SA is in negotiations with Japan's Mitsui & Co. Ltd.
Japan's demand for ethanol is between 1.8 billion and 6 billion liters each year and Brazil exported 3.4 billion liters last year. Japan is willing to invest up to $8 billion hoping Brazil can/will do more.
Japan's National Development Bank will finance distilleries aimed exclusively for the Japanese market.
The United States is the world's largest ethanol producer…but Brazil is number 2 and Brazil has more agricultural land than the U.S.
Brazil also produces ethanol from sugarcane, whereas the U.S. produces it from corn, which is more expensive.
Ethanol is becoming populare worldwide because it is cheaper and Brazil is reaping the rewards of the demand.
Brazil is about to reap much more if the deal with Japan goes through.
So, why don't more countries use ethanol?
Tags: 3142, 3202POSTED IN: Doing Business with Japan
1 opinion for Japan-Brazil Ethanol Investment Could Reach $8 billion
Francesco DeParis
May 16, 2007 at 3:56 pm
This is just one of the many steps to come to turn Brazil into the next OPEC.
I comment regularly on the business/investor side of alternative energy on Energy Spin: Alternative Energy Blog for Investors-Served Daily.
Cheers,
Francesco DeParis
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