Brazil Petrobras, Mitsui To Invest In Ethanol Project

Brazilian state-run energy giant Petroleo Brasileiro (PBR), or Petrobras, and Japan's Mitsui & Co. (8031.TO) announced Wednesday that the companies will invest in an ethanol project in Goias state.

According to a statement, the two companies will partner with Itaruma Participacoes SA to produce 200,000 cubic meters of ethanol from sugar cane annually.

Petrobras didn't disclose the amount it was investing in the project.

In March, Petrobras and Mitsui created a joint venture for investments in renewable energy called Participacoes Nippo Brasileira em Complexos Bioenergeticos SA. The joint venture aims to take stakes in ethanol mills, with the goal of reaching the capacity to produce 4.5 billion liters of ethanol.

Brazil is the world's second-largest producer of ethanol and its biggest exporter.

"Petrobras and Mitsui decided to invest in the project, considering its environmental and economic feasibility, as well as the great potential to export Brazilian ethanol to meet global demand for renewable energy," Petrobras said in a statement.