Petrobras to exit biofuel production business

By Erin Voegele | September 21, 2016

On Sept. 20, Brazil-based Petrobras announced plans to withdraw from biofuel production as part of a new strategic plan.

The plan, referred to as the “Strategic Plan and Business and Management Plan 2017-2021,” includes a brief statement indicating the company will “withdraw entirely from biofuel production, LPG distribution, fertilizer production and petrochemical interests, preserving technological competencies in areas with development potential.” According to Petrobras, it will focus on oil and gas moving forward.

Petrobras did not elaborate on future plans for its biofuel assets within its announcement, and did not immediately return messages from Ethanol Producer Magazine seeking additional information.

According to information published to Petrobras’ website, the company operates in the ethanol production industry through partnerships and holds stakes in 10 ethanol plants. These facilities are located in Brazil and Africa. Petrobras also owns three biodiesel plants, and operates two others in partnership with another company.