Brazilian ethanol development announced

An American investment group has moved to join forces with Brazil's leading ethanol producer Cosan.

The new company will be called Radar and will purchase land, which will then be used to grow sugar for the ethanol plants.

Paulo Diniz, chief financial officer for Cosan, told Reuters that the decision to go ahead with the joint venture was made because the each announcement that a new production plant was going to be built resulted in a rise in land prices in the surrounding area.

He said that the new company would attempt to acquire farmland before any details of new facilities were released to the public.

Mr Diniz added that there were already plans in place to buy two $185 million (£100 million) plots of land.

In related news, Cosan announced earlier this month that it has entered into an electric power trading agreement with CPFL. Through a Gasa unit, a project for energy co-generation using biomass will be explored.

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