Biodiesel and Ethanol Investing

The Wall Street Journal reports that the biofuels unit of Brazilian state-run Petrobras and Banco do Brasil signed a financing deal that will help local farmers grow crops for biofuel production. The $49.4 million package establishes credit lines for local farmers producing soy, sunflower and castor oil used in biofuels production. Petrobras operates three biodiesel plants in Brazil: Candeias in Bahia state, Quixada in Ceara state and Montes Claros in Minas Gerais state. The company expects to produce 940 million liters of biodiesel a year by 2012.