Oct 31, 2011 - Petrobras Biocombustivel, the biodiesel arm of Brazil's federal oil and gas giant Petrobras (SAO:PETR3; NYSE:PBR), will speed up its programme for development of bio-kerosene amid the rising demand for jet fuel in Brazil.
According to the president of Petrobras Biocombustivel, Miguel Rossetto, who was quoted by Brazilian news agency Agencia Estado on Saturday, Brazil's aviation kerosene market grew 13% year-on-year in the first half of 2011. The market has grown in the USA and Europe as well, Rossetto said, adding that the bio-kerosene development is strategic for Petrobras.
Together with the second-generation ethanol, the production of bio-kerosene branded BioQAV will be a priority for Petrobras until 2015. The investments in the bio-jet fuel will form part of the USD 300 million (EUR 214.4m) Petrobras Biocombustivel plans to spend on research and development (R&D) in the sector, Rossetto noted.
The company is now analysing the use of vegetable oils and sugar cane sucrose for the production of the bio-kerosene. Petrobras already has programmes for the production of vegetable oils for biodiesel and is also a shareholder in big Brazilian sugar and ethanol players like Acucar Guarani and Sao Martinho (SAO:SMTO3).
Petrobras is seeking place in the market which may emerge with the resolution of the International Air Transport Administration (Iata) targeting a 10% use of renewable fuels by 2017 as part of efforts to cut by 50% the sector's CO2 emissions by 2050.
(USD 1 = EUR 0.715)
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