French Tereos' unit to supply ethanol to Brazilian Petrobras
(ADPnews) - Oct 26, 2010 - French sugar and ethanol maker Tereos said yesterday its unit Acucar Guarani had inked a four-year contract with Brazilian oil and gas company Petrobras (SAO:PETR3) for the supply of 2.2 million cu m of ethanol.
The contract is seen to generate a revenue of some EUR 885 million (USD 1.2bn) over the period.
The agreement follows the strategic partnership formed in April between Tereos and Petrobras, by which the latter acquired a stake in Acucar Guarani, as part of its diversification policy into the sector of biofuels.
The ethanol supplied by Tereos' unit will be distributed by Petrobras' subsidiary Petrobras Distribuidora.
Acucar Guarani is one of the major producers in Brazil of ethanol from sugar cane. In the 2010/11 season, the company will process some 17.4 million tonnes of sugar cane in the South American country.
The sector of biofuels has been attracting many foreign investors to Brazil over the past few years.