Petrobras to invest US$164 million in second-generation ethanol

Brazil’s Petrobras said it will invest US$164 million to produce second-generation ethanol. Petrobras expects an annual output of between 90 and 100 million liters per year of second-generation ethanol, which is made by using residue from wood and corn, sugarcane bagasse and wheat straw. Funding for the project will be available by the end of next year.
“The current cost of production for second generation ethanol is US$0.48/l,” Petrobras’ technological manager João Norberto said. “Considering the cost of first generation ethanol in Brazil, which is US$0.57, this makes us very optimistic. It will be proven when we have commercial units in operation.” The company explained that the production of second-generation ethanol will reduce the number of sugarcane plantations, and will increase Brazil’s ethanol production by 40%. (March 29, 2012)