George Soros to invest 900 million dollars in Brazilian ethanol

Jun 5, 2007, 20:07 GMT

Sao Paulo - US finance tycoon George Soros said Tuesday that he will invest 900 million dollars in the production of ethanol in Brazil, and demanded that the United States and European Union open their markets for the biofuel produced in the South American country.

Putting an end to barriers in developed nations would help eliminate a 'paradox' that leaves an excess supply of ethanol in Brazil and a 'hunger for biofuels across the world,' he said at the Ethanol Summit in Sao Paulo. The seminar was aimed at sutyding the global market for alternative fuels.

The United States produces ethanol from corn, while Brazil makes its variant from more energy-efficient sugar cane. The two countries together produce over 72 per cent of the world's ethanol.

Soros accused Washington of protecting US corn producers with its tariffs on ethanol, regardless of efficiency in terms of energy. He noted that the energy conversion of ethanol is tiny, and that sugar cane delivers eight to nine times more energy per unit.

The Hungarian-born Soros, who made the bulk of his fortune through financial speculation and is a bitter critic of US President George W Bush, said he is now 'a speculator in ethanol.'

He said he hopes the issue of tariffs is solved, 'to make investment in ethanol really viable.'