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Tereos, Petrobras May Make Ethanol at Mozambique Sugar Mill

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Dec. 14 (Bloomberg) -- Tereos Internacional SA, a Brazilian agribusiness, and oil company Petroleo Brasileiro SA may modify a sugar mill in Mozambique to produce ethanol as the African country seeks to increase its use of the renewable fuel.

The companies will study the viability of turning molasses, a viscous byproduct of sugar-cane processing, into ethanol at the Cia de Sena mill, Sao Paulo-based Tereos said today in a regulatory filing. Mozambique will introduce a rule mandating that 1 part ethanol is mixed with 9 parts gasoline, it said.

“This new regulation will reduce Mozambique’s dependence on imported fuels, helping to secure the country’s energy sources,” according to the statement.

Cia de Sena is capable of crushing 1.2 million metric tons of cane a year, according to the statement. The study will be performed by Tereos unit Guarani SA, Petrobras and two of its units Petrobras Bicombustivel SA and Petroleos de Mocambique SA.

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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