Brazil’s government plans to invest $2.85 billion into research on renewable power and biofuels in an effort to rely less on imported technology and to increase long term R&D. As part of the PAISS program and the new Inova Energia program, the Financiadora de Estubdos e Projectos (Finep) research agency and the Brazilian Development Bank (BNDES) will make BRL 5.2 billion ($2.4 billion) in low interest rate loans available to firms. Finep will also provide BRL 300 million in grants. Established in 2011, the PAISS program has already agreed to BRL 3.1 billion in loans. Brazil’s power agency expects utilities, which must invest 1% of net operating revenues into R&D and energy efficiency, to spend BRL 600 million as part of Inova Energia. As the largest producer of sugar cane worldwide, Brazil is aiming to make the production of cellulosic ethanol more economical by using sugar-cane waste as feedstock. Last year, Brazil’s public and private investments in research on renewable energy technologies were 15% more than 2009 at $112.6 billion.

Source: Bloomberg