SAO PAULO – British oil giant BP plc plans to produce cellulosic ethanol made from biomass, known as “second generation” ethanol, in Brazil starting in 2013, BP Biofuels chief Philip New said in an interview published Monday in the press.

The first plant for producing second generation ethanol will be constructed in the United States in 2010, with the technology being transferred to BP’s plants in Brazil after operations commence at the U.S. facility, New told the Valor Online business daily.

Brazilian oil giant Petrobras already has a research facility that is working on ethanol from cellulosic biomass, as well as a pilot plant that is producing the fuel from bagasse, the fiber left over after sugar cane is crushed.

Ethanol, made from crops such as sugar cane and corn, is basically grain alcohol. The alternative fuel is usually mixed with unleaded gasoline and can be pumped into vehicles at existing service stations.

The Science and Technology Ministry, moreover, wants to open a complex in the city of Campinas next year to conduct research on alternative fuels, offering space at the facility to companies interested in producing ethanol in Brazil from different types of vegetable residues.

Brazil and the United States are the top ethanol producers in the world, but the South American country makes its ethanol from sugar cane, while U.S. producers mainly use corn.

In 2008, Brazil produced a record 26.6 billion liters of ethanol, with output up 15.6 percent from the previous year.

By 2013, when large-scale cellulosic ethanol production is slated to begin, some 15 million automobiles in Brazil will be able to operate with gasoline or ethanol, the National Automobile Manufacturers Association said. EFE