Oct. 31 (Bloomberg) -- Japanese trading company Sojitz Corp. will pay 9.2 billion yen ($80 million) for a stake in a bioethanol company in Brazil, the world's biggest producer of ethanol.

Sojitz will acquire 33.33 percent of ETH Bioenergia SA, the Tokyo-based company said in a faxed statement today. The investment would be its first in the Brazilian bioethanol industry, Sojitz said.

Demand is increasing for bioethanol as rising crude oil prices add to production costs of gasoline and countries seek to cut emissions of greenhouse gases. Global exports of ethanol will more than double in the next four years as Brazil boosts supplies of the alternative fuel, Peter Baron, executive director of the International Sugar Organization, said Oct. 23.

ETH Bioenergia plans to produce 980 million liters of ethanol and 790,000 tons of raw sugar in 2016, and will expand through mergers and acquisitions, Sojitz said. ETH Bioenergia was established in July 2007 by Brazil's Odebrecht SA.

Sojitz will sell ethanol produced by ETH Bioenergia in Brazil and the U.S., and may also import the fuel into Japan, the trading company said.

Shares in Sojitz fell 6 yen, or 1.1 percent, to close at 521 yen on the Tokyo Stock Exchange.

To contact the reporter on this story: Aya Takada in Tokyo atakada2@bloomberg.net

Last Updated: October 31, 2007 05:59 EDT