Shell, Cosan form joint venture in Brazil biofuels

Shell, Cosan form joint venture in Brazil for biofuels

12:17 PM, 18th June 2011
Shell, Cosan form joint venture in Brazil for biofuels
Peter Voser, CEO, Shell.

HAGUE, THE NETHERLANDS: Shell and Cosan launched a multi-billion dollar joint venture that will become a leading producer of the low-carbon biofuel, ethanol made from sugar cane. Named Raízen, this major retail and commercial fuels company will operate in Brazil, one of the world’s fastest-growing markets.

In one of the biggest biofuels deals to date, Shell is combining its extensive retail experience, global network and research in advanced biofuels with Cosan’s technical knowledge of producing biofuels on a large scale. Raízen will produce and sell over 2 billion litre a year of the lowest-carbon biofuel commercially available - ethanol made from Brazilian sugar cane.

Raízen will distribute biofuels and over 20 billion litre of other industrial and transport fuels annually through a combined network of nearly 4,500 Shell-branded service stations. In Brazil it becomes the third largest fuels company. Plans would extend the company’s reach in future years to export more ethanol to other key markets.

The joint venture also combines Shell’s expertise and technology partnerships in advanced biofuels with Cosan’s experience in the commercial production of low-carbon biofuels.

“We are building a leading position in the most efficient ethanol-producing country in the world, Low-carbon, sustainable biofuels will be increasingly important in the global transport fuel mix,” said Peter Voser, CEO, Shell.

“This is a turning point in the search for alternative energy sources. Raízen is one of Brazil’s largest companies and is ready to offer international markets a clean, renewable and economically viable solution,” said Rubens Ometto Silveira Mello, Chairman of the Board, Cosan

New energy policies in Europe and the USA are calling for more renewable, lower-carbon fuels for transport. Biofuels make up around 4 per cent of transport fuel in Europe and 3 per cent in the USA. Globally biofuels currently meet around 3 per cent of road-transport fuel demand. Shell expects this to rise to about 9 per cent by 2030. The new company will address the rising demand globally.

© WOC News

 

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