Energy giant BP has completed the formation of its joint venture with Bunge, BP Bunge Bioenergia.
Brazil is currently one of the largest and fastest growing markets for biofuels in the world; through this transaction, BP Bunge Bioenergia is now the second largest operator by effective crushing capacity in the Brazilian bioethanol market.
BP’s Mario Lindenhayn will become executive chairman of the joint venture, while Bunge’s Geovane Consul will be CEO. The two companies will have equal representation on the board of directors of BP Bunge Bioenergia.
“Biofuels is an increasingly important part of a lower carbon energy system,” said Lindenhayn. “We are proud to complete the formation of BP Bunge Bioenergia, which provides a strong foundation to build upon the capabilities of both organisations to develop ideas for growth and deliver significant operational and financial synergies.”
Consul added: “BP Bunge Bioenergia is well-placed to support Brazil’s increasing demand for low carbon bioenergy. Our joint venture will enable us to leverage shared best practices to improve efficiency and sustainability, maximising the use of technology and identifying opportunities to develop future capabilities in this crucial market.”
The joint venture has 11 biofuels sites in five Brazilian states, with more than 10,000 employees. It has total crushing capacity of 32 million metric tonnes of sugarcane per year, capable of producing more than 1.5 billion litres of ethanol and 1.1 million tonnes of sugar.