Petrobras’ Board of Directors has approved the creation of a company, a wholly-owned subsidiary, to undertake all its biofuel activities. Acccording to Petrobras, the group's current biofuel interests are spread throughout the group making overall management and control difficult. Petrobras has forecast an investment in the biofuels sector of $1.5bn through to the end of 2012.

The new company will absorb both ethanol production (CBios) and biodiesel input acquisition and processing, currently done directly by Petrobras, in addition to future investments. The purpose of this incorporation is to coordinate the biofuel production chain activities in Brazil and abroad.

Ethanol and biodiesel marketing and logistics, in Brazil and abroad, will remain under the Downstream area’s responsibility.