Sweden, Brazil Sign Biofuels Deal During Lula Visit

By Mr Ethanol September 12, 2007

Sweden agreed Tuesday to abolish a tax on ethanol, which it currently purchases from Brazil, under a biofuels accord signed here during a visit of Brazilian President Luiz Inacio Lula da Silva, officials said.

“We have signed an agreement regarding science and cooperation concerning bioenergy,” Swedish Prime Minister Fredrik Reinfeldt told a press conference.

“We intend to abolish this special tax that was introduced on January 1, 2006 in Sweden.

“We want to take away this tax as fast as possible,” he added, with the move expected to take effect on January 1, 2009.

Ethanol, made from sugar cane, is one of the most efficient sources of biofuel, and is also a market where Brazil hopes to expand its reach.

Lula, who arrived here Tuesday on a two-day state visit, said: “I’m very happy to be backed by Sweden. The relations between Sweden and Brazil are extraordinarily good.

“There are 200 Swedish companies in Brazil, but it’s not only because of the number of jobs that are generated by Swedish companies but also because of the political thinking, the way we (have worked) together for so many years.”