Rio de Janeiro, Brazil [RenewableEnergyWorld.com] BP announced that it plans to buy a 50% stake in Tropical BioEnergia SA, a joint venture established by Brazilian companies Santelisa Vale and Maeda Group, which is constructing a 115 million gallon per year ethanol refinery in Edeia, Goias State, Brazil.
The joint venture also intends to move forward with plans to build a second ethanol refinery, investing a total of approximately US $1 billion in the two refineries. Assuming all the required approvals are received, BP will pay approximately US $59.8 million for the 50% stake. The parties said that they hoped to be able to complete the transaction before the end of June 2008.
“This investment, which is the largest made by an international oil company in the Brazilian ethanol industry represents a significant step in delivering BP’s strategy for biofuels which centers around sustainable feedstocks which do not impact on food supplies and investing in research work to develop the technologies required to produce advanced biofuels,” said Phil New, of BP Biofuels. “BP is delighted to be partnering with two Brazilian companies with leading positions in their sectors and we look forward to a long relationship with them.”