Indigenous tribe lands in Brazil will not be used for biofuel feedstock

Brazilian biofuels producer Raizen, owned by oil brand Shell, has signed a landmark agreement in regard to where it will source its feedstock.

Raizen was going to purchase sugar cane for ethanol grown on some farmlands that encroached on indigenous lands in the Mato Grosso do Sul state owned by the Guarani people. The deal was been struck after alleged months of pressure from Brazilian authorities.

Part of a statement released by the company read: ‘This deal shows our commitment to combine sustainable development with the well-being of the local communities’.

The agreement comes into play at the start of November.

Raizen currently produces 2.2 billion litres of ethanol annually for both domestic and export consumption.