Toyota Tsusho Corporation (TTC) recently concluded a long-term bio-ethanol offtake agreement with Petroleo Brasileiro S.A. (Petrobras), Brazilian national oil company.
Brazilian sugarcane ethanol will be used as feedstock in a chemical ethanol project that TTC is deploying with a local partner in Taiwan to produce Bio-PET. TTC agrees to procure sugar cane based bio-ethanol of approximately 1.4 million cubic meters for 10 years from 2012 and the contract is approximately 70 billion yen. This contracted bio-ethanol is supplied to TTC's bio PET business in Taiwan. This agreement will make establish the first global bio-PET integrated supply chain including, procurement of bio-ethanol, production of bio-mono ethylene glycol, tolling business of PET, and marketing of bio-PET.
Petrobras foresees investment in the order of 18 trillion yen in the 2010-2014 business plan. Petrobras has affirmative strategy not only conventional oil and gas projects but also renewable energy including bio-fuel. This long-term offtake agreement is one of the actions to realize their strategy in the bio-fuel business.
This is also first major agreement for Petrobras. And it would establish bio-ethanol supply chain between Brazil and Asia. This agreement will strength partnership with Petrobras. TTC accelerate to expand renewable energy business and continue to strength bio-ethanol supply chain which contributes to lower-carbon society.
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