PERU - Caña Brava sends off 1st ethanol shipment

Peruvian ethanol producer Caña Brava has sent its first shipment of ethanol overseas through the northern port of Paita.

The 8,000m3 shipment was sold for US$5mn to Mitsui and will arrive at Rotterdam port, local press reported. Caña began producing the biofuel at its 350,000 liter/d plant in August.

Almost all of next year's production will go to Mitsui, although negotiations are also underway with UK major BP (LSE: BP), Caña general manager Ángel Irazola was quoted as saying.

Irazola added that although the principal market will be Europe, talks are underway with Chilean companies.

Some 100Mm3 of ethanol will be produced next year that will bring in roughly US$80mn, according to the executive. The company invested US$185mn to develop its ethanol project, he said.