Oil companies invest in Brazilian ethanol

The interest from the oil companies in Brazilian ethanol, both in production and distribution, is growing. Following British oil company BP PLC, which announced in 2008 investments of US$1 billion in a Brazilian biofuel project, Royal Dutch Shell PLC is striking a deal with Brazil´s sugar and biofuel giant Cosan to create a $21 billion a year ethanol joint venture.  Shell would contribute $1.63 billion in cash to the venture over two years. It would be the Anglo-Dutch major’s first significant foray into biofuels and the largest move by a Western energy company so far into ethanol production and distribution.