Visiting Brazilian President Luiz Inacio Lula da Silva and his Chilean counterpart Michelle Bachelet on Thursday signed a biofuel cooperation agreement together with ten other pacts that cover such fields as health, education, and tourism.
The biofuel cooperation agreement is designed to share Brazil's experience in ethanol production and help Chile develop biofuels and fuel which Lula seeks to promote in other countries.
The two South American presidents spoke highly of the agreement in which Brazil commits to aiding Chile in identifying the potential sectors for biofuel production.
Bachelet said the development of new energy sources would allow Chile to diversify its energy supplies and stop depending on Argentina's gas deliveries.
Biofuels, like ethanol and biodiesel, are produced from farming and forest products and may be combined with gasoline and diesel oil. Brazil is one of the largest ethanol producers around the world.