PetroSun, Inc. (PSUD.PK) Announces PetroSun BioFuels Brazil PetroSun Inccorporated announced today that the Company has formed PetroSun BioFuels Brazil to establish its algae-to-biofuel operations in Brazil. PetroSun BioFuels Brazil will enter into joint venture agreements to develop algae cultivation farms and extraction plants in Brazil to produce algal oil, algae biomass products and biodiesel.
The Brazilian government has enacted mandatory biodiesel legislation that requires a two percent biodiesel blended product effective January 1, 2008 with an escalation to five percent by 2013. The current annual ground transportation diesel consumption rate in Brazil approximates 40 billion liters of petroleum-based diesel. A two percent biodiesel blend would require 800 million liters of biodiesel per year. The wholesale market price of biodiesel in Brazil is currently eighty-five cents per liter.
The Company will be announcing the execution of the initial joint venture agreement by the end of September 2007.
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