Petrobras starts producing a 3% gasoline-ethanol blend in Japan

3/3/2009

Brazil Japan Ethanol (BJE), a joint venture formed between Petrobras and Japan Alcohol Trading, inaugurated its first unit to produce E3 – a fuel made with 3% gasoline-ethanol blend – in Japan yesterday (03/02).

With the project, Petrobras hopes to show the Japanese business community that it is technically and economically feasible to introduce a new, more efficient and more ecological type of fuel in the country.

The construction of the plant, which began in October 2008, is part of the Sodegaura Project, designed by BJE in partnership with the Japanese Ministry of the Environment to introduce E3 in the Japanese market. The facility is located in the city of Sodegaura, in the Kanto Region, central Japan, which accounts for 40% of all gasoline consumed in the country.

Overall output is estimated at 3 million liters of E3 per month, to be supplied to independent gas stations. The Nansei Sekiyu refinery, in Okinawa, will supply the gasoline for the project. Petrobras holds 87.5% of the stakes in the refinery.

The first load of E3 was delivered to the Shinjuku Park gas station, in Tokyo. The minister of the Environment of Japan, Tetsuo Saito, the Brazilian ambassador to Japan, Castro Neves, Petrobras’ general manager in Japan, Osvaldo Kawakami, in addition to Company executives and several Japanese authorities attended the inauguration ceremony.

Petrobras press release