BP expanding Brazilian sugarcane ethanol business
15 September 2011
BP is expanding its business in Brazil that produces ethanol from sugarcane. The company is increasing its share in Brazilian biofuel company Tropical BioEnergia S.A. to 100%, acquiring the remaining 50% of the company from the joint venture partners for about US$71 million.
BP is also taking an additional share of Brazilian sugar and ethanol producer Companhia Nacional de Açúcar e Álcool (CNAA) from LDC Bioenergia S.A. for a price of approximately US$25 million, bringing its holding to 99.97%.
BP’s current joint venture partners in Tropical BioEnergia S.A. are Maeda S.A. Agroindustrial (25%) and LDC-SEV Bioenergia S.A. (25%). After the deal is completed, subject to regulatory approval and agreed closing conditions, BP will become the 100% owner of Tropical BioEnergia S.A. and operator of its producing ethanol mill, located in Edéia, Goiás state. The mill will be able to supply both Brazilian and international markets with ethanol.
BP intends to double the size of the operations at Tropical BioEnergia to a capacity of 5 million tonnes of crushed cane—450 million liters (119 million gallons US) of ethanol equivalent—per year and also to expand operations in the region. The mill will also have the capacity to supply approximately 250GWh of electricity per year to the grid.
This acquisition takes the number of producing mills in BP’s Brazilian ethanol portfolio to three, all of which are located in Goiás and Minas Gerais states in the center-south of the country.Since April 2011, BP has been the operator of the CNAA mills in Itumbiara, Goiás and Ituiutaba, Minas Gerais.
This is another significant milestone in BP’s global biofuel strategy as we expand our operations base and demonstrate our genuine commitment to Brazil’s ethanol industry, which can deliver sustainable and competitive biofuels into the global market.
—Philip New, Vice President of BP Biofuels
Most Bio-fuels may represent a net increase in GHG and pollution instead of the previously claimed net decrease.
Posted by: HarveyD | 15 September 2011 at 10:35 AM
I wonder if Obama will promise to be one of the best customers of BP's Brazilian ethanol, like he promised to be one of the best customers of oil from Brazil?
http://www.youtube.com/watch_popup?v=M2V4EM_jaFg&vq=medium
Posted by: ejj | 15 September 2011 at 10:51 AM
@HarveyD
This might be true for corn ethanol produced in the USA when electricity produced from coal-fired power plants is used but this is certainly not the case for sugarcane ethanol. Even studies supported by the EU Commission have recognized the good GHG results for sugarcane ethanol. You should take the time to read some studies in this field.
Posted by: Peter_XX | 15 September 2011 at 01:11 PM
Ethanol, with lower energy and government subsidies, is not the financial panacea that we think.
To fuel a Ford F-150 with E-85 for 20,000 Km a year for 10 years would cost (with 2011 $ and 2011 prices) :
1) $36,950 for ethanol instead of $22,200 for regular gas, i.e. for a NET increase of $14,750.
It would be doubly beneficial to use the $14,740 for a PHEV/F-150 and regular gas to further reduce the fuel cost to around $11,100.
We should think twice before using ethanol.
Posted by: HarveyD | 17 September 2011 at 10:51 AM
Weren't these clowns working with Dupont on a joint venture in the UK to make Butanol a commercial drop in hydrocarbon replacement fuel for standard gasoline?
Posted by: Mannstein | 17 September 2011 at 05:06 PM