Infinity Bio-Energy in Brazil targets 1 billion liters of ethanol for exports
Bermuda-based investment company Infinity Bio-Energy plans to produce 1 billion liters of ethanol by 2009 in Brazil in order to supply international markets, company CEO Sergio Thomson-Flores says.
As a result, the company is investing US$700 million in the country: "We will do this [reach the target] through acquisitions and investing in greenfield projects," he said. The company has invested some US$260 million since it started in March 2006, buying control of three sugar and ethanol producing mills in Brazil with a combined capacity of 300 million liters per year.
The balance of the US$700 million in the coming years will go to the acquisition of two more mills and to the launch of the construction of three mills this year and another five in 2007.
An international market
Infinity expects global demand for the fuel to grow as countries seek alternative fuel mixtures to reduce pollution and secure their energy supplies. This could double the demand for ethanol in the world, the company's CEO said:
ethanol :: biomass :: bioenergy :: biofuels :: energy :: sustainability :: energy security :: trade :: Brazil ::
"There are a dozen and a half countries that have authorized an ethanol admixture into gasoline," he said. "If there are firm supply commitments, they can turn this into a mandatory mixture that will require another 40 billion liters per year."
Brazil produces roughly 17 billion liters of ethanol per year, roughly 43% of world output.
Brazilian leadership
Brazil, which has a 23% mandatory admixture into gasoline, is well positioned to maintain its leadership, he said.
"Brazilian ethanol production is very competitive," he said. "Brazil produces ethanol sugarcane at about half the cost of US ethanol production from maize, excluding subsidies granted by the US government."
Although Infinity is headquartered in Bermuda, it considers itself to be a Brazilian company since its workers and know-how are all Brazilian. The company raised much of its capital for investments in an IPO on the London Stock Exchange, with US, European and Brazilian investors.
Infinity thinks it is ready to take advantage of the growing market. To that end it has started talks for long-term ethanol supply contracts with exporters and industry leaders, including Brazil's federal energy company Petrobras. Petrobras is seeking long-term contracts to resell ethanol abroad.
As a result, the company is investing US$700 million in the country: "We will do this [reach the target] through acquisitions and investing in greenfield projects," he said. The company has invested some US$260 million since it started in March 2006, buying control of three sugar and ethanol producing mills in Brazil with a combined capacity of 300 million liters per year.
The balance of the US$700 million in the coming years will go to the acquisition of two more mills and to the launch of the construction of three mills this year and another five in 2007.
An international market
Infinity expects global demand for the fuel to grow as countries seek alternative fuel mixtures to reduce pollution and secure their energy supplies. This could double the demand for ethanol in the world, the company's CEO said:
ethanol :: biomass :: bioenergy :: biofuels :: energy :: sustainability :: energy security :: trade :: Brazil ::
"There are a dozen and a half countries that have authorized an ethanol admixture into gasoline," he said. "If there are firm supply commitments, they can turn this into a mandatory mixture that will require another 40 billion liters per year."
Brazil produces roughly 17 billion liters of ethanol per year, roughly 43% of world output.
Brazilian leadership
Brazil, which has a 23% mandatory admixture into gasoline, is well positioned to maintain its leadership, he said.
"Brazilian ethanol production is very competitive," he said. "Brazil produces ethanol sugarcane at about half the cost of US ethanol production from maize, excluding subsidies granted by the US government."
Although Infinity is headquartered in Bermuda, it considers itself to be a Brazilian company since its workers and know-how are all Brazilian. The company raised much of its capital for investments in an IPO on the London Stock Exchange, with US, European and Brazilian investors.
Infinity thinks it is ready to take advantage of the growing market. To that end it has started talks for long-term ethanol supply contracts with exporters and industry leaders, including Brazil's federal energy company Petrobras. Petrobras is seeking long-term contracts to resell ethanol abroad.
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