Two years after partnering with Eike Batista and vowing to create Brazil’s biggest non-state energy company, German utility EON SE is facing the prospect of pumping more money into the venture without Batista’s help.
The Brazilian government’s pledge to help power distributors cope with the worst drought in four decades is set to fall short of their additional spending, according to data compiled by an industry association.
The 23-story Serrador building rises gracefully in downtown Rio de Janeiro, a rounded granite-and- glass art deco masterpiece that conjures the opulence of another era. Completed in 1944 and named for Spanish cinema-house promoter Francisco Serrador, it once held a luxury hotel with a nightclub that attracted a mix of Rio elites and visiting American movie stars.
Brazil is considering a request by Petroleo Brasileiro SA, the country’s state-owned oil company, to increase the amount of ethanol added to gasoline, said two government officials with knowledge of the discussions.
Petroleo Brasileiro SA’s decision to suspend investment in a $3.1 billion ethanol pipeline, the world’s largest, is spurring speculation the project will be scaled back and fail to lower fuel prices at the pump.