Petrobras (PBR)

Biofuels

www.petrobras.com.br/ri/english
Contacts: PETRÓLEO BRASILEIRO S. A. – PETROBRAS
Investor Relations Department I Raul Adalberto de Campos - Gerente Executivo I E-mail: petroinvest@petrobras.com.br
Av. República do Chile, 65 – 22^nd floor - 20031-912 - Rio de Janeiro, RJ I Tel.: 55 (21) 3224-1510 / 9947

This document may contain forecasts that merely reflect the expectations of the Company’s management. Such terms as “anticipate”, “believe”, “expect”, “forecast”, “intend”, “plan”, “project”, “seek”, “should”, along with similar or analogous expressions, are used to identify such forecasts. These predictions evidently involve risks and uncertainties, whether foreseen or not by the Company. Therefore, the future results of operations may differ from current expectations, and readers must not base their expectations exclusively on the information presented herein.

Petrobras is committed with the sustainable development based on profitability, integrated growth and social and environmental responsibility.

Biofuels

• Biodiesel: Petrobras’ biodiesel program foresees, initially, industrial unit installation in Candeias (BA), Montes Claros (MG), and Quixadá (CE) with capacity to produce 50,000 tons/year each and with operations slated to begin by late 2007. The program will involve total resources of the order of R$570 million. Petrobras is also analyzing the possibility of building other biodiesel plants, in partnership with the private initiative, in several places nationwide by 2008. The foreseen availability of 855,000 cubic meters of biodiesel per year in 2010 will allow 2,3 million equivalent tons a year of carbon emissions to be prevented.
  
  
• Ethanol: Initial Ethanol Export Corridor project deployment phase, involving the construction of ethanol pipelines to transport ethanol for exports.
  
  
• HBIO: Technological process Petrobras developed to produce diesel using a petroleum and vegetable oil mix at conventional refineries. The process will be deployed in four refineries in 2007, in Minas Gerais, Paraná, Rio Grande do Sul, and São Paulo and will involve R$150 million in investments. The demand for vegetable oils will reach 425,000 cubic meters in 2010. By 2011, HBIO will also be produced in Petrobras’ other refining units in Brazil.