By Marcelo Teixeira
PIRACICABA, Brazil, July 22 (Reuters) - Brazil's Raizen saidit plans to start building additional cellulose ethanol plantsafter production costs for the second generation biofuel becomecompetitive with conventional ethanol costs, Chief ExecutiveVasco Dias said on Wednesday.
Raizen, a joint venture between local conglomerate Cosan SA and Royal-Dutch Shell Plc, inaugurated itsfirst second-generation biofuel plant in Piracicaba.
The plant currently produces cellulosic ethanol at about1.40 reais a liter, compared with 1.15 reais/ltr forconventional ethanol. Cellulosic ethanol costs are expected toconverge on conventional costs in 2017 and drop below them in2018, Raizen executives said.
(Writing by Reese Ewing)