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.

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