Brazil, Indonesia sign ethanol agreement

Brazil and Indonesia signed a biofuels agreement on March 15 that will open the way for the Asian nation to start producing ethanol, Brazil’s Agriculture Ministry said. The agreement for Brazil to provide Indonesia with technical help to produce ethanol from sugarcane was signed in Jakarta by Indonesian Agriculture Minister Anton Apriyantono and his Brazilian counterpart, Luis Carlos Guedes, a ministry statement said. Indonesia has set aside 2.2 million hectares and earmarked US$1.42 billion to subsidize local farmers. Brazil produces some 16.7 million liters of ethanol a year, making it the world’s second largest ethanol producer after the U.S., and hopes to increase that figure to 23.3 million liters (6.16 gallons) in four years. (March 16, 2007)