Petrobras, Guarani sign MOU to study feasibility of ethanol production, commercialization from molasses produced at cane sugar mill in Mozambique; goal is to tap new market expected with city's new mandatory 10% ethanol in gas requirement

MAPUTO, Mozambique , December 14, 2011 (press release) – On Wednesday (Dec 14) Petrobras, Petrobras Biocombustível, Guarani and Petróleos de Moçambique (Petromoc) signed, in Maputo, the capital of Mozambique, a memorandum of intent to study the feasibility of ethanol production and commercialization in the country.

Petrobras Biocombustível, by its partnership with Tereos Internacional in Guarani, has partnership in a cane sugar mill in Mozambique, the Companhia de Sena, with a grinding capacity of 1.2 million tons of sugarcane. The study seeks to determine the possibility of investments in also producing ethanol from the molasses currently produced at the mill. The goal is to provide for the new market that is expected to come about in Mozambique with the introduction of the mandatory blending of 10% ethanol in gasoline (E10).

This will have a positive impact in reducing Mozambique's dependence on imported fuels, contributing to assure the nation's energy security. Additionally, ethanol production can take advantage of its natural characteristics in order to foster economic growth in a sustainable manner, creating jobs in the poorest regions of the country.

The study combines Petrobras' experience in the technology of blending ethanol with gasoline, as well as its experience in the logistics and commercialization of oil products and biofuels, with Petrobras Biocombustível and Guarani's ethanol production know-how.

The memorandum is also in line with the plans Mozambique has of implementing its government's biofuels policies and strategies and Petromoc's goals of developing a program of ethanol blending with gasoline, operating in the production, commercialization and distribution of ethanol.

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