BP takes 100% ownership of Brazilian ethanol company

BP will own 100% of the Brazilian biofuel company Tropical BioEnergia after agreeing to acquire the remaining 50% of the company from its current joint venture partners for a total cash consideration of approximately $71m.

Its current joint venture partners in Tropical BioEnergia are Maeda Agroindustrial and LDC-SEV Bioenergia. They each own 25%.

Tropical BioEnergia operates an ethanol mill, located in Edéia, Goiás state. BP intends to double production to a capacity of 5m million tonnes of crushed cane, or 450m litres of ethanol equivalent, per year and also to expand operations in the region.

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 centre-south of the country.

Philip New, Vice President of BP Biofuels, commented, "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."

source: stockmarketwire