The Brazilian oil company has signed a Memorandum of Understanding (MoU) with China’s state Petrochina International Company Limited for a six-month study of developing ethanol production destined solely for the Chinese market.
Petrobras would be supplying ethanol to blend into gasoline. China is interested in investing in production in the South American nation, according to Petrobras.
China recently dropped import taxes from 30% to 5%, making Brazilian ethanol a viable option in the Asian nation.
