By the end of June, BP is looking to acquire 50% of a joint venture (JV) between Santelisa Vale and Maeda Group, which together comprise Tropical BioEnergia SA.
Assuming all goes will, BP will fork over an estimated $59.8 million, subject to working capital adjustments, and provide funding for agreed future investments. The JV will construct an ethanol refinery with a capacity of 435 million liters (115 million gallons) per year, in Edéia, Goeas State, Brazil. The JV also intends to build a second refinery at a later date. The estimated cost for both refineries is just under $1 billion.
“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,” commented Phil New, head of BP Biofuels.
The refineries will also be able to sell surplus electricity, each exporting at least 30 megawatts (MW) of additional power from integrated bagasse cogeneration facilities. BP says that the facilities will offer a platform for deploying future technologies such as lignocellulosics and biobutanol.
Jorge Maeda, chief executive officer of Maeda Group commented, “Today we are demonstrating how Maeda’s unique agriculture expertise, attendant network of relationships, and knowledge of the region’s soils, climate and rural labor conditions combined with Santelisa Vale’s sugarcane expertise can provide sustainable renewable and reliable solutions for fuel.”