BP Expands Biofuel Activities

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Wednesday, 14 September 2011 23:30

Written by Pincus RS

Theindonesiatoday.com - BP announced has agreed to increase its share in Brazilian biofuel company Tropical BioEnergia S.A. to 100 percent, by acquiring the remaining 50 percent of the company from its current joint venture partners for a total cash consideration of approximately US$71 million.

BP's current joint venture partners in Tropical BioEnergia S.A. are Maeda S.A. Agroindustrial (25 percent) and LDC-SEV Bioenergia S.A. (25 percent).

According to its statement made available to The Indonesia Today, after the deal is completed, subject to regulatory approval and agreed closing conditions, BP will become the 100 per cent owner of Tropical BioEnergia S.A. and operator of its producing ethanol mill, located in Edéia, Goiás state. BP intends to double the size of the operations at Tropical BioEnergia to a capacity of five million tonnes of crushed cane, or 450 million 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.

The mill will be able to supply both Brazilian and international markets with ethanol. The agricultural land used for sugarcane cultivation related to all BP's operations in Brazil is within the areas permitted under Brazil's proposed Agro-Ecological Zoning of Sugarcane (Zoneamento Agroecológico da Cana-de-açúcar).

The total planned combined crushing capacity of Tropical BioEnergia when fully developed, is expected to be five million tonnes of sugar cane per year. At full capacity, the mill will have a production capacity of about 450 million litres of ethanol equivalent per year. The mill will also have the capacity to supply approximately 250GWh of electricity per year to the grid. (Theindonesiatoday.com)

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