Monday, April 28, 2008

How do you know the US Ethanol Tariff might be going away?

When major refiners starts investing in Ethanol South America.

I saw it over at the Biobased News where they cited a BP Press Release.

BP announced today that it intends to take a 50 per cent stake in Tropical BioEnergia SA, a joint venture established by Brazilian companies Santelisa Vale and Maeda Group, which is constructing a 435 million liter (115 million gallons) a year ethanol refinery in Edéia, Goias State, Brazil.

Quite the bet on BP's part. Or maybe that's the only way to play in Brazil. To build strategic partnerships with local biofuel producers. The Press Release points to sugar cane and sugar cane waste as the feedstocks. It also mentions the plants markets to be both domestic Brazil and export abroad.

NOTE: I have no basis for this speculation beyond my initial gut reaction when first reading the news. BP, Shell, Chevron, and Exxon Mobil have all been making good-sized biofuel bets as of late. Something about his one just seemed to run of the mill to be just another "bet on the future" PR move by major oil refiners.

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