Brazilian integrated energy major Petrobras's board of directors has approved the creation of a wholly owned subsidiary, which will be responsible for the firm's biofuels operations.
Petrobras said that these operations are spread out among several company areas and subsidiaries, rendering management of the operations more difficult.
The new company will be responsible for both ethanol production and biodiesel input acquisition and processing, which has been done directly by Petrobras, in addition to future investments.
Petrobras noted that the purpose of creating this new subsidiary is to co-ordinate all the biofuel production chain activities in Brazil and abroad. Ethanol and biodiesel marketing and logistics, in Brazil and abroad, will remain under the responsibility of the firm’s downstream unit.
Petrobras’s strategic plan calls for its global presence in biofuel marketing and logistics, leading the Brazilian biodiesel production, and boosting its share in the ethanol business, with investments forecasted at $1.5 billion through 2012.