May 30, 2005
Petrobras to export ethanol to Venezuela and help PDVSA build ethanol industry

(BNamericas.com) - "Brazil's federal energy company Petrobras will export ethanol fuel starting July to neighboring Venezuela and help that country's state oil company PDVSA develop its own local fuel ethanol industry, Petrobras said in a statement.

The ethanol exports are part of a memorandum of understanding (MOU) signed between the governments of Brazil and Venezuela to study and promote joint projects in oil, natural gas, renewable fuels, electricity and mining projects, Petrobras said.

Petrobras will initially export 25,000 cubic meters a month of fuel ethanol, which will be mixed with PDVSA's gasoline up to 10% by volume. This will comply with legislation that requires the elimination of lead in gasoline by August in the eastern Venezuelan region near the Brazil border, the statement said. The two companies will create a joint work group along with their respective energy ministries to develop the ethanol supply agreement and help Venezuela develop its own ethanol industry, including assistance to regulate the market"