BP has increased its share in a major Brazilian biofuel producer to 100%
Cutting sugar cane in Brazil Image: Cicero Omena |
The oil giant, which already owns two ethanol production mills in central-south Brazil, is set to increase its 50% stake in Tropical BioEnergia SA to take complete ownership of the operation in a $71m buy-out subject to regulatory approval and conditions.
Tropical BioEnergia is currently a three-way joint venture between BP, Maeda S.A. Agroindustrial and LDC_SEV BioEnergia S.A. and is currently producing around two and a half million tonnes of crushed cane to make ethanol for biofuels. BP has stated its intention to double the current output of 450 million litres as well as expanding its regional biofuel operations further in the future.
The mill will supply domestic and international markets and uses sugar cane from Brazil's designated agro-ecological zone. As well as producing ethanol, the plant will also provide as much as 250GWh or electricity to Brazil's national grid.