Brazil's largest business group Votorantim announced on Tuesday a partnership with U.S. biotechnology company Amyris to produce diesel fuel from sugarcane.
Votorantim has made an investment of undisclosed value in Amyris, making it one of the five main partners of the U.S. company. Fernando Reinach, President of the group's New Business branch, will join Amyris' administration council.
According to Amyris CEO John Melo, the investments will be used to develop the technology for the production of diesel, as well as kerosene and gasoline from sugarcane. The technique involves the use of a modified yeast to transform the sugarcane into diesel instead of ethanol.
Amyris currently has a lab in Campinas, southeastern Brazil, which is expected to double its capacity by the end of the year. The company intends to set up an experimental plant by Feb. 2009 to focus on diesel production. In 2010, Amyris plans to build a regular plant in Saertaozinho, Sao Paulo state. The large-scale production is to start in 2011.
"For 2011, we intend to produce 400 million liters of diesel. In 2012, we expect a 1 billion liters production," said Melo.
Brazil currently consumes 45 billion liters of diesel fuel per month.
Melo added that while oil prices tended to increase in the foreseeable future, the sugarcane diesel price would get cheaper. He estimated the price of the sugarcane diesel at 60 U.S. dollars per barrel.
Source:Xinhua
|
Comment
Tell A Friend
Print Format
Save Article