BP, Santelisa Vale, and Maeda Plan Joint Venture in Brazilian Biofuels Production

April 24, 2008 – Vol.13 No.5

BP, Santelisa Vale, and Maeda Plan Joint Venture in Brazilian Biofuels Production.

BP has announced that it intends to take a 50 per cent stake in Tropical BioEnergia SA, a joint venture established by Brazilian companies Santelisa Vale and Maeda Group, which is constructing a 435 million liter (115 million gallons) a year ethanol refinery in Edeia, Goias State, Brazil.

In the joint venture Santelisa Vale and Maeda Group would each hold 25 per cent and BP with a R$100 million (US $59.8 million) investment will hold a 50 per cent stake. Together the partners will move ahead with to build a second ethanol refinery, investing a total of approximately R$1.66 billion (US $1 billion) in the two refineries.

The Tropical Bioenergia joint venture will focus on potential sugarcane production and the manufacturing and marketing of conventional ethanol, including the associated agricultural assets and cogeneration plants. Sugarcane is the most efficient source of biofuel currently available. It provides a greenhouse gas emissions reduction of up to 80 per cent.

Besides developing biofuels, the refineries are expected to be able to sell surplus electricity, with each of them exporting at least 30 MW of surplus power from integrated bagasse cogeneration facilities. The facilities are also intended to offer a potential platform for deploying future technologies such as lignocellulosics and biobutanol.

Operations at the first refinery are expected to commence during the second half of 2008, with full capacity anticipated by mid-2010.

The Maeda Group is one of the largest cotton producers in the world.

Santelisa Vale Group is the second-largest sugar cane crusher in Brazil and the first in energy cogeneration from bagasse. As it already operates a number of ethanol refineries, Santelisa Vale has expertise along the entire value chain of ethanol/sugar production.

BP is of one of the world's largest energy companies, the largest oil and gas producer in the US and one of the largest refiners. (4/24/08)

Links:

BP
http://www.bp.com

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