The Wall Street Journal Friday reported that Brazilian state-run energy giant Petrobras purchased a 50% stake in a local Brazilian biodiesel company for 200 million Brazilian reais ($128.4 million).

The stake is in BSBIOS Industria e Comercio de Biodiesel Sul Brasil S.A., which produces 160 million liters of biodiesel per year from vegetable oils, said the Journal.

According to the Journal, the federal oil company has been ramping up partnerships and acquisitions in the biofuels sector with an aim of more than doubling output by 2014. Biodiesel is of particular interest because Brazil's massive agriculture and transportation sectors consume hefty amounts of diesel fuel every year.

Petrobras plans to spend $3.5 billion through 2014 to boost biofuels output. Biodiesel production is expected to climb to 750,000 cubic meters (980,963 cubic yards) in 2014, up from 500,000 cubic meters at the end of last year. Ethanol production, meanwhile, is targeted for 2.6 million cubic meters by 2014, up from output of one million cubic meters in 2010, the report indicated.
 
According to a company statement, the acquisition consolidates Petrobras' leadership in the biofuels sector.

Petrobras is driven by the challenge of supplying the energy that can propel development and ensure the future of the society with competency, ethics, cordiality, and respect for diversity.

The company is a publicly traded corporation, the majority stockholder of which is the Government of Brazil, and it performs as an energy company in the following sectors: exploration and production, refining, oil and natural gas trade and transportation, petrochemicals, and derivatives, electric energy, biofuel and other renewable energy source distribution.

A leader in the Brazilian oil industry, Petrobras has expanded its operations aiming to be among the top five integrated energy companies in the world by 2020. The company has a presence in 28 countries. The 2010-2014 business plan foresees investments in the order of $174.4 billion.

PETROBRAS is world-renowned company for its ultra-deep water oil exploration technology.

Transpetro, Petrobras Transporte S.A., undertakes oil and derivatives, ethanol, biofuels, and natural gas transportation and storage activities. It is in charge of more than 11,000 kilometers of pipelines - among oil pipelines and gas pipelines - which interconnect all Brazilian regions and supply the country's most remote points.

Petrobras Distribuidora operates in the distribution, trade and industrialization of oil products and derivatives, in addition to in imports and exports. On the Brazilian streets and roads, the company has upwards of 7,000 service stations, the biggest service station network in Brazil amongst other units.

3rd July 2011