RIO DE JANEIRO, Brazil (AP) — A new ethanol company with prominent foreign investors took a big step on Friday toward starting operations in Brazil, announcing the private placement of US$200 million (US$151 million) in common shares.Bermuda-registered Brazilian Renewable Energy Company Ltd.’s founding shareholders include venture capitalist Vinod Khosla, American supermarket magnate Ron Burkle, America Online founder Steve Case, former World Bank President James Wolfensohn and film producer Steven Bing, the company said in a statement.

The company will be overseen by Philippe Reichstul, a former chief executive of Petroleos Brasileiro SA, Brazil’s government-run oil company. Brazilian investors include Tarpon All Equities LLC and Grupo Semco.

Brenco plans to sell ethanol to the huge domestic market, and export it amid rising international demand.

Press officer Thais Franco did not specify which overseas markets will be targeted, and could not confirm reports that the company hopes to produce 3.8 billion liters (1 billion gallons) annually within the next ten years.

Brazilian ethanol makers produced 17 billion litres (4.5 billion gallons) last year, and exported 3.4 billion litres (900 million gallons).

The company has its headquarters in Brazil’s largest city of Sao Paulo, near the sugarcane fields where most Brazilian ethanol is produced.