Petrobras signs expansion deal with Minas Gerais

Brazil’s Petrobras Biocombustível and the state government of Minas Gerais signed an MOU for the expansion of the company’s Montes Claros biodiesel plant. The project will boost production capacity from 109 million liters per year (l/y) to 152 million l/y. Project cost is estimated at 28 million real (US$16 million). From 3,200 farmers, an additional 1,300 will be called upon to supply more feedstock. Minas Gerais is Brazil’s second largest biodiesel consumer and the project is aimed at reducing imports from other states. Montes Claros is part of Petrobras Biocombustível. The company operates units in the municipalities of Candeias (Bahia) and Quixadá (Ceará), in addition to Marialva (Paraná) and Passo Fundo (Rio Grande do Sul). Total combined capacity of the five plants is 721 million l/y. (January 27, 2012)