Brazil’s Petrobras to Produce 29% More Ethanol Fuel, Valor Says

Petroleo Brasileiro SA (PETR4), Brazil’s state-controlled oil producer, may produce 1.06 billion liters (280 million gallons) of ethanol from the next sugarcane crop, 29 percent more than this season, Valor Economico SA reported.

Petrobras Biocombustivel SA expects production to increase because it’s planted more sugar cane and better weather this year will boost yield, the Sao Paulo-based newspaper said today, citing Miguel Rossetto, chief executive officer of the state-run oil company’s biofuel arm. Brazil’s next harvest begins in April.

The company operates nine mills in Brazil with its partners Sao Martinho SA (SMTO3), Guarani SA and Total SA (FP), according to the report.

To contact the reporter on this story: Stephan Nielsen in Sao Paulo at snielsen8@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

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