Petrobras announced the formation of Petrobras Biocombustivel for the newly inaugurated Candeis Biodielal plant. At the inauguration ceremony on July 29, Brazilian President Luiz Inacio Lula said the group will also manage two other mines being built in Minas Gerais and Ceara.
Petrobras introduced its board of directors to reinforce its commitment to the environment and performance in the biofuels sector, which is expected to hold an investment of $1.5 billion through 2012. The three plants are expected to produce 170 million liters of biodiesel per year.
"In addition to bringing social and environmental benefits, Petrobras Biocombustivel was created to meet the global demand for alternative fuels. This is a market opportunity in a context in which Brazil holds an outstanding position. As an integrated energy company, Petrobras could not be lag behind in this," said Alan Kardec, the president of the subsidiary.