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BP Biofuels to invest $350M to expand sugarcane ethanol production in Brazil

7 December 2012

BP Biofuels plans to invest $350 million to expand the ethanol processing capacity of Tropical, one of its sugarcane processing ventures in Brazil. Tropical’s processing capacity will double to five million tons of sugarcane producing 450 million liters (119 gallons US) of ethanol equivalent per year.

The expansion, which is scheduled to start next year, includes the building of a new mill. The mill is expected to be operating at full capacity by the end of 2014 or early 2015.

The mill will also be able to export approximately 340 GWh of electric energy to the Brazilian national grid.

The agricultural area for sugarcane cultivation related to the project meets the requirements of the Agro-Ecological Zoning of Sugarcane in Brazil.

In 2011, BP Biofuels expanded its investments significantly with the full acquisition of Brazilian sugar and ethanol producer Companhia Nacional de Açúcar e Álcool (CNAA). In addition to Tropical, BP operates two producing ethanol mills located in Itumbiara (Goiás State) and Ituiutaba (Minas Gerais State).

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