BP announces expansion biofuels business in Brazil

BP announces expansion of biofuels business in Brazil

12:12 PM, 17th June 2011
BP announces expansion of biofuels business in Brazil
Carl-Henric Svanberg, Chairman, BP

 

LONDON, UK: BP will acquire majority control of the Brazilian ethanol and sugar producer Companhia Nacional de Açúcar e Álcool (CNAA). When CNAA’s assets are fully developed, this is expected to increase BP’s overall Brazilian production capacity to around 1.4 billion litre of ethanol equivalent per year (nine million barrels). BP will pay approximately $ 680 million to acquire 83 per cent of the shares of CNAA and to refinance 100 per cent of CNAA’s existing long term debt. BP will become the operator of two producing ethanol mills, located in Goiás and Minas Gerais states and a third mill under development in Minas Gerais state. The mills will also supply ethanol to international markets.

“Low carbon energy will play a significant role in meeting world energy demand and biofuels will help meet this demand. This will increase our exposure to growing energy markets,” said Carl-Henric Svanberg, Chairman, BP. According to the recently published BP Energy Outlook 2030, alternative energy is expected to be the fastest growing energy sector over the next 20 years, with global biofuels production projected to more than triple.

The total planned combined crushing capacity of all three mills, when fully developed, is expected to be 15 million tonnes of sugar cane per year. At full capacity, each mill will have a production capacity of about 480 million litres of ethanol equivalent per year.

© WOC News

 

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