Shell plans to enter into a joint venture with the Brazilian ethanol producer Cosan. The two companies have signed a declaration of intent for the production, distribution and sale of ethanol in Brazil.

Brazil makes widespread use of ethanol made from sugarcane as a biofuel. This will be the first time that Shell has been involved in the production of biofuel. The energy company believes that in the next 20 years ethanol will prove to be the most realistic replacement for petrol in the transport sector in the next 20 years. Shell aims to invest 1.6 billion dollars in the joint venture in the next two years. The enterprise is intended to become market leader in Brazil, with 4500 points of sale and an annual production of 17 billion litres.
 

Photo: sugarcane field (flickr / mòni)