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Brazil's President Inázio Lula da Silva visited Europe not long ago and he promoted the benefits of Brazilian biodiesel in France and Spain. This might have seemed like a good idea, if it weren't for the fact that Spain's biggest oil company, Repsol, had just frozen the construction of a new biodiesel plant alongside the country's largest refinery in Tarragona. This leaves Brazil with just one relatively large oil company, Portugal's Galp, to distribute its biodiesel in the Old Continent.

Luiz Inácio Lula da Silva, the President of Brazil visited last week a plant near São Paul which is testing a new method to obtain ethanol from sugarcane pomace bagasse (what's left after sugar is extracted). Petrobras, the company that is financing this research hopes to obtain 40 percent more ethanol without harvesting more sugarcane.

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