According to a report filled by Reuters, French oil group Total is keen on a Brazilian foray that will see it produce a range of biochemicals with its partner firm in the country, Amyris Inc.

Total announced it is planning to enter Brazil's sugarcane industry through its technology partner Amyris Inc to produce a range of biochemicals. Through joint ventures with local groups, Total's goal is to lay claim to between 5 and 10 per cent of Brazil's cane output by 2020, which it would use as feedstock for next-generation biofuels and chemical products.

Philippe Boisseau, president of Total Gas and Power reiterated the firm is keen to produce (conventional cane) ethanol probably for some years but the intention in the end is to produce chemical products like biolubricants, jet biofuel, biochemicals, bio-diesel out of sugarcane.

Total has a 22 per cent share in Amyris, which has developed so-called second-generation biofuels technology. The California-based firm uses microorganisms to produce biodiesel closely resembling mineral-based fossil fuel, using juice extracted from crushed sugarcane. It relies on Brazilian sugarcane as a feedstock for its products. Amyris' backers include funds affiliated with Kleiner Perkins Caufield & Byers, Khosla Ventures and TPG Biotechnology Partners.

The firm raised $84.8 million in its initial public offering in September. Total’s first project, a cane mill producing ethanol only in partnership with Brazilian cane group Sao Martinho, will come on line in 2012.

According to Boisseau, Biofuels production is one of Total's strategies to address soaring global demand for energy. He further added that Cane in Brazil is the only way to produce clean bioproducts with no subsidies, no deforestation and with no competition with food. Boisseau was speaking during a press conference call with the media.

Brazil's ethanol and sugar industry has been an investment target for several oil giants over the last few years. BP was the first oil giant to invest in the sector, followed by Brazilian state oil company Petrobras, Exxon Mobil and Royal Dutch Shell, which is teaming with sugar and ethanol group Cosan.

Amyris CEO John Melo said Total's strategy of having several local partners differs from most of its competitors. He noted that it takes more than a big oil company with a lot of capital to be successful, especially in Brazil. That's a mistake many people have made, he said, adding that technology and "a right partner" were crucial.

27 Dec 2010.